The tax rates are as shown below: Taxable Income Tax Rate 15% $0 - 50,000 50,00175,000 25% 75,001 100,000 34% 100,001 335,000 39% Your firm currently has taxable income of $80,900. How much additional tax will you owe if you increase your taxable income by $22,100? Multiple Choice O $8,619 $7,284 $7,664 $7,274

The tax rates are as shown below: Taxable Income Tax Rate 15% $0 - 50,000 50,00175,000 25% 75,001 100,000 34% 100,001 335,000 39% Your firm currently has taxable income of $80,900. How much additional tax will you owe if you increase your taxable income by $22,100? Multiple Choice O $8,619 $7,284 $7,664 $7,274

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 was the firm's net income if the firm paid income taxes of $2,000 and the average tax rate was 25%, O A. $1,000 B. $6,000 O c. $8000 O D. $7,000
Suppose Essen Corp has the following weights and costs. What is the WACC if the company has a 21% tax rate? Component Common equity Debt (before tax) R 11.5% 0.8 0.2 7.5% 10.39% ()8.71% ()6.25% 9.50% 10.70% Page 29 of 30 Previous Page Next Page
a. What is the relative tax advantage of corporate debt if the corporate tax rate is TC=0.22, the personal tax rate on interest is TpD=0.37, but all equity income is received as capital gains and escapes tax entirely ( TpE=0 )? b. How does the relative tax advantage change if the company decides to pay out all equity income as cash dividends that are taxed at 10% ? Note: Do not round intermediate calculations. Round your answers to 4 decimal places.
Pleas calculate the AVERAGE and MARGINAL TAX based on the tax bracket provided below. (Hint: every box in the table may NOT be used.) $0 $1,001 $3,001 Tax Bracket $10,001 $20,001 $40,001 $1,000 $3,000 $10,000 $20,000 $40,000 & Above Average Tax:__`17.729% Marginal Tax:__`25¹% Tax 5% 10% 15% 25% 30% 45% $ $ Taxable Income Amount Taxed type your ansv type your ansv type your ansv = type your ansv $16,500 $ $ $ $ Actual Tax Paid type your answe type your answe type your answe type your answe type your answe Amount Remaining $ $ $ $ type your answe type your answe type your answe type your answe
Adjusted WACC. Lewis runs an outdoor adventure company and wants to know what effect a tax change will have on his company's WACC. Currently, Lewis has the following financing pattern: Equity: 36% and cost of 18.17% Preferred stock: 15% and cost of 11.88% Debt: 49% and cost of 10.8% before taxes What is the adjusted WACC for Lewis if the tax rate is a. 40%? b. 25%? с. 20%? d. 10%? е. 0%? ..... a. What is the adjusted WACC for Lewis if the tax rate is 40%? |% (Round to two decimal places.)
If we add to our problem that Builtrite also had $20,000 in interest expense and that they were in the 39% income tax bracket, how much would this interest expense cost Builtrite after taxes? $12,200 $7,800 $3,900 $20,000
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Simplified Marginal Tax Rates Tax up to Beginning of range End of Marginal start of range rate range 12,000 20,000 48,000 95,000 to 0% 12,000 20,000 48,000 to 15% 1,200 7,360 21,460 42,660 to 22% to 30% 40% 148,000 210,000 95,000 to 148,000 210,000 to 45% and above 70,560 50% Sasha has annual gross income of $76,000 and works as a lawyer. What is the maximum disability insurance coverage she can get, if she can qualify for 90% of her after tax income? (Use the tax table above and input the number only, to the nearest dollar.) Answer: Next page
John makes $300,000 as a single filer. How much is he likely to pay in taxes using marginal tax rate 2024 tax brackets Tax rate 10% 12% 22% 24% 32% 35% 37% Single filers $11,600 or less $11,601 to $47,150 $47,151 to $100,525 $100,526 to $191,950 $191,951 to $243,725 $243,726 to $609,350 $609,351 or more Source: Internal Revenue Service O $75,375 $19696.25 $105000 $72000 Married couples filing jointly $23,200 or less $23,201 to $94,300 $94,301 to $201,050 $201,051 to $383,900 $383,901 to $487,450 $487,451 to $731,200 $731,201 or more Married couples filing separately $11,600 or less $11,601 to $47,150 $47,151 to $100,525 $100,526 to $191,150 $191,151 to $243,725 $243,276 to $365,600 $365,601 or more Head of household $16,550 or less $16,551 to $63,100 $63,101 to $100,500 $100,501 to $191,150 $191,151 to $243,700 $243,701 to $609,350 $690,351 or more
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Suppose a firm in the 40% federal-plus-state tax bracket needs to pay $1 in dividends to its shareholders. What is the pretax income it should have to pay this dividend? $1.00 $1.67