Martin Company has 500k in taxable income, 50k in interest income, 100k in dividend income. Using the corporate tax rate table, what is the company's tax liability for the year? Taxable Income$0-$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-$18,333,333Over $18,333,333Tax on Baseof Bracket$07,50013,75022,250113,9003,400,0005,150,0006,416,667Percentage onExcess above Base15%25343934353835

Taxable income refers to the base upon which an income tax system imposes tax. In other words, the…

Answered: Martin Company has 500k in taxable…

Martin Company has 500k in taxable income, 50k in interest income, 100k in dividend income. Using the corporate tax rate table, what is the company's tax liability for the year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

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Martin Company has 500k in taxable income, 50k in interest income, 100k in dividend income. Using the corporate tax rate table, what is the company's tax liability for the year?

Taxable Income
$0-$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
Tax on Base
of Bracket
$0
7,500
13,750
22,250
113,900
3,400,000
5,150,000
6,416,667
Percentage on
Excess above Base
15%
25
34
39
34
35
38
35

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