Nector is a company that sells bee keeping supplies and connects beekeepers all over the world to sell, pollinate, and rent bees. Yes, you can rent bees to come pollinate your crops! The company makes $575,000 income. They have costs of $223,000 over the last year. Assets that qualify for $10,000 in deductions, and an extra environmental tax deduction of $13,000. Nector will use the use the bracket below to assess their federal income taxes. a. What is the taxable income for the first year? b. How much should the company expect to pay in taxes in the first year? There are no state income taxes required.
Nector is a company that sells bee keeping supplies and connects beekeepers all over the world to sell, pollinate, and rent bees. Yes, you can rent bees to come pollinate your crops! The company makes $575,000 income. They have costs of $223,000 over the last year. Assets that qualify for $10,000 in deductions, and an extra environmental tax deduction of $13,000. Nector will use the use the bracket below to assess their federal income taxes. a. What is the taxable income for the first year? b. How much should the company expect to pay in taxes in the first year? There are no state income taxes required.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Nector is a company that sells bee keeping supplies and connects beekeepers all over the world
to sell, pollinate, and rent bees. Yes, you can rent bees to come pollinate your crops! The
company makes $575,000 income. They have costs of $223,000 over the last year. Assets that
qualify for $10,000 in deductions, and an extra environmental tax deduction of $13,000. Nector
will use the use the bracket below to assess their federal income taxes.
a. What is the taxable income for the first year?
b. How much should the company expect to pay in taxes in the first year? There are
no state income taxes required.
Transcribed Image Text:Income
% Taxes
<$40,000
$40,001 – $75,000
$75,001 - $100,000
$100,001 - $290,000 30%
$290,001 - $500,000
$500,001 - $1M
$1,000,001 - $3M
<$3,000,001
10%
11%
15%
35%
30%
30%
20%
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