Last year Sanderson, Inc. had sales of $3.4 million. The firm's cost of goods sold came to $2.2 million, its operating expenses excluding depreciation of $101,000 were $391,000, and the firm paid $153,000 in interest on its bank loans. Also, the corporation received $46,000 in dividend income (from a company in which it owned less than 20 percent of its shares) but paid $24,000 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?
(Corporate income tax) Last year Sanderson, Inc. had sales of
$3.4
million. The firm's cost of goods sold came to
$2.2
million, its operating expenses excluding
$101,000
were
$391,000,
and the firm paid
$153,000
in interest on its bank loans. Also, the corporation received
$46,000
in dividend income (from a company in which it owned less than
20
percent of its shares) but paid
$24,000
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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