Last year Sanderson, Inc. had sales of $3.1 million. The firm's cost of goods sold came to $2.1 million, its operating expenses excluding depreciation of $97,000 were $392,000, and the firm paid $150,000 in interest on its bank loans. Also, the corporation received $45,000 in dividend income (from a company in which it owned less than 20 percent of its shares) but paid $22,000 in the form of dividends to its own common stockholders. Use the corporate tax rates shown in the popup window, Taxable Income Marginal Tax Rate $0−$50,000 15% $50,001−$75,000 25% $75,001−$100,000 34% $100,001−$335,000 39% $335,001−$10,000,000 34% $10,000,001−$15,000,000 35% $15,000,001−$18,333,333 38% Over $18,333,333 35% , to calculate the corporation's tax liability. What are the firm's average and marginal tax rates?
Last year Sanderson, Inc. had sales of $3.1 million. The firm's cost of goods sold came to $2.1 million, its operating expenses excluding depreciation of $97,000 were $392,000, and the firm paid $150,000 in interest on its bank loans. Also, the corporation received $45,000 in dividend income (from a company in which it owned less than 20 percent of its shares) but paid $22,000 in the form of dividends to its own common stockholders. Use the corporate tax rates shown in the popup window, Taxable Income Marginal Tax Rate $0−$50,000 15% $50,001−$75,000 25% $75,001−$100,000 34% $100,001−$335,000 39% $335,001−$10,000,000 34% $10,000,001−$15,000,000 35% $15,000,001−$18,333,333 38% Over $18,333,333 35% , to calculate the corporation's tax liability. What are the firm's average and marginal tax rates?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Last year Sanderson, Inc. had sales of
$3.1
million. The firm's cost of goods sold came to
$2.1
million, its operating expenses excluding
$97,000
were
$392,000,
and the firm paid
$150,000
in interest on its bank loans. Also, the corporation received
$45,000
in dividend income (from a company in which it owned less than
20
percent of its shares) but paid
$22,000
in the form of dividends to its own common stockholders. Use the corporate tax rates shown in the popup window,
|
Taxable Income
|
Marginal Tax Rate
|
|---|---|
|
$0−$50,000
|
15%
|
|
$50,001−$75,000
|
25%
|
|
$75,001−$100,000
|
34%
|
|
$100,001−$335,000
|
39%
|
|
$335,001−$10,000,000
|
34%
|
|
$10,000,001−$15,000,000
|
35%
|
|
$15,000,001−$18,333,333
|
38%
|
|
Over $18,333,333
|
35%
|
to calculate the corporation's tax liability. What are the firm's average and marginal tax rates?
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