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Shimmer Inc. is a calendar-year-end, accrual method corporation. This year, it sells the following long-term assets: Accumulated Asset Sales Price Cost Depreciation $670,000 $653,000 $31,000 Building Sparkle 229,000 281,000 n/a Corporation stock Shimmer does not sell any other assets during the year, and its taxable income before these transactions is $893,000. Taxable Income < $50,000 $50,000-$75,000 $75,000 $100,000 $100,000-$335,000 $335,000-$10,000,000 Corporate Income Tax Rates $10,000,000-$15,000,000 $15,000,000-$18,333,333 Over $18,333,333 Тах 15% of the taxable income $7,500 + 25% of taxable income over $50,000 $13,750 + 34% of taxable income over $75,000 $22,250+39% of taxable income over $100,000 $113,90034% of taxable income over $335,000 $3,400,000 + 35% of taxable income over $10,000,000 $5,150,000+ 38% of taxable income over $15,000,000 35% of the taxable income

Shimmer Inc. is a calendar-year-end, accrual method corporation. This year, it sells the following long-term assets: Accumulated Asset Sales Price Cost Depreciation $670,000 $653,000 $31,000 Building Sparkle 229,000 281,000 n/a Corporation stock Shimmer does not sell any other assets during the year, and its taxable income before these transactions is $893,000. Taxable Income < $50,000 $50,000-$75,000 $75,000 $100,000 $100,000-$335,000 $335,000-$10,000,000 Corporate Income Tax Rates $10,000,000-$15,000,000 $15,000,000-$18,333,333 Over $18,333,333 Тах 15% of the taxable income $7,500 + 25% of taxable income over $50,000 $13,750 + 34% of taxable income over $75,000 $22,250+39% of taxable income over $100,000 $113,90034% of taxable income over $335,000 $3,400,000 + 35% of taxable income over $10,000,000 $5,150,000+ 38% of taxable income over $15,000,000 35% of the taxable income

FINANCIAL ACCOUNTING
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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What are Shimmer's taxable income and tax liability for the year? Use Corporate Tax Rate Table.

Shimmer Inc. is a calendar-year-end, accrual method corporation. This year, it sells the following long-term assets: Accumulated Asset Sales Price Cost Depreciation $670,000 $653,000 $31,000 Building Sparkle 229,000 281,000 n/a Corporation stock Shimmer does not sell any other assets during the year, and its taxable income before these transactions is $893,000.
Transcribed Image Text:Shimmer Inc. is a calendar-year-end, accrual method corporation. This year, it sells the following long-term assets: Accumulated Asset Sales Price Cost Depreciation $670,000 $653,000 $31,000 Building Sparkle 229,000 281,000 n/a Corporation stock Shimmer does not sell any other assets during the year, and its taxable income before these transactions is $893,000.
Taxable Income < $50,000 $50,000-$75,000 $75,000 $100,000 $100,000-$335,000 $335,000-$10,000,000 Corporate Income Tax Rates $10,000,000-$15,000,000 $15,000,000-$18,333,333 Over $18,333,333 Тах 15% of the taxable income $7,500 + 25% of taxable income over $50,000 $13,750 + 34% of taxable income over $75,000 $22,250+39% of taxable income over $100,000 $113,90034% of taxable income over $335,000 $3,400,000 + 35% of taxable income over $10,000,000 $5,150,000+ 38% of taxable income over $15,000,000 35% of the taxable income
Transcribed Image Text:Taxable Income < $50,000 $50,000-$75,000 $75,000 $100,000 $100,000-$335,000 $335,000-$10,000,000 Corporate Income Tax Rates $10,000,000-$15,000,000 $15,000,000-$18,333,333 Over $18,333,333 Тах 15% of the taxable income $7,500 + 25% of taxable income over $50,000 $13,750 + 34% of taxable income over $75,000 $22,250+39% of taxable income over $100,000 $113,90034% of taxable income over $335,000 $3,400,000 + 35% of taxable income over $10,000,000 $5,150,000+ 38% of taxable income over $15,000,000 35% of the taxable income
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