If a Corporation's Taxable Income Is Up to $50,000 $50,000-$75,000 $75,000-$100,000 $100,000-$335,000 $335,000-$10,000,000 $10,000,000-$15,000,000 $15,000,000-$18,333,333 Over $18,333,333 Cash Accounts receivable Inventory Other current assets Net fixed assets Total assets It Pays This Amount on the Base of the Bracket $ 0 2012 1,500 4,000 8,500 500 7,500 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 17,500 19,200 32,000 34,000 Balance Sheet 2013 2,400 4,200 7,800 400 Net sales Cost of goods sold SG&A expenses Depreciation Plus This Percentage on the Excess over the Base (Marginal Rate) 15% 25 34 39 34 35 38 35 EBIT Interest paid Taxable income Taxes Net income Dividends Income Statement (2013) Accounts payable Notes payable Long-term debt Common stock Retained earnings Total liabilities and equity 35,000 15,000 5,000 2,000 13,000 4,000 9,000 2,500 6,500 2,600 Average Tax Rate at Top of Bracket 15.0% 18.3 22.3 34.0 2012 5,300 1,500 12,800 8,000 4,400 34.0 34.3 35.0 35.0 2013 4,800 1,400 9,500 10,000 8,300 32,000 34,000 Calculate the tax amount for 2013 using the tax rate table shown above. Are the taxes on the income statement and the tax bill you computed the same?
If a Corporation's Taxable Income Is Up to $50,000 $50,000-$75,000 $75,000-$100,000 $100,000-$335,000 $335,000-$10,000,000 $10,000,000-$15,000,000 $15,000,000-$18,333,333 Over $18,333,333 Cash Accounts receivable Inventory Other current assets Net fixed assets Total assets It Pays This Amount on the Base of the Bracket $ 0 2012 1,500 4,000 8,500 500 7,500 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 17,500 19,200 32,000 34,000 Balance Sheet 2013 2,400 4,200 7,800 400 Net sales Cost of goods sold SG&A expenses Depreciation Plus This Percentage on the Excess over the Base (Marginal Rate) 15% 25 34 39 34 35 38 35 EBIT Interest paid Taxable income Taxes Net income Dividends Income Statement (2013) Accounts payable Notes payable Long-term debt Common stock Retained earnings Total liabilities and equity 35,000 15,000 5,000 2,000 13,000 4,000 9,000 2,500 6,500 2,600 Average Tax Rate at Top of Bracket 15.0% 18.3 22.3 34.0 2012 5,300 1,500 12,800 8,000 4,400 34.0 34.3 35.0 35.0 2013 4,800 1,400 9,500 10,000 8,300 32,000 34,000 Calculate the tax amount for 2013 using the tax rate table shown above. Are the taxes on the income statement and the tax bill you computed the same?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:If a Corporation's
Taxable Income Is
Up to $50,000
$50,000-$75,000
$75,000-$100,000
$100,000-$335,000
$335,000-$10,000,000
$10,000,000-$15,000,000
$15,000,000-$18,333,333
Over $18,333,333
Cash
Accounts receivable
Inventory
Other current assets
Net fixed assets
Total assets
It Pays This
Amount on the
Base of the Bracket
0
$
2012
1,500
4,000
8,500
500
17,500
32,000
7,500
13,750
22,250
113,900
3,400,000
5,150,000
6,416,667
Balance Sheet
2013
2,400
4,200
7,800
400
19,200
34,000
Dividends
Net sales
Cost of goods sold
SG&A expenses
Depreciation
Plus This Percentage
on the Excess over the
Base (Marginal Rate)
15%
25
34
39
EBIT
Interest paid
Taxable income
Taxes
Net income
Income Statement (2013)
34
35
38
35
Accounts payable
Notes payable
Long-term debt
Common stock
Retained earnings
Total liabilities and equity
35,000
15,000
5,000
2,000
13,000
4,000
9,000
2,500
6,500
2,600
Average Tax
Rate at Top of
Bracket
2012
5,300
1,500
12,800
8,000
4,400
32,000
15.0%
18.3
22.3
34.0
34.0
34.3
35.0
35.0
2013
4,800
1,400
9,500
10,000
8,300
34,000
Calculate the tax amount for 2013 using the tax rate table shown above. Are the taxes on
the income statement and the tax bill you computed the same?
YE
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