The taxable income for Company X is $65,000.00

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The taxable income for Company X is $65,000.00.
        

The Corporate Tax Rate Table is listed below.                                  

RATES                                   INCOME LEVELS

15%                                        0-50,000

25%                                       50,001 – 75,000

34%                                      75,001 – 100,000

 

What is company X's average tax rate?              

Expert Solution
Step 1: Meaning of Average Tax
The average tax rate is the tax rate an individual pays when he or she adds all sources of income that are taxable and divides it by the amount of tax the individual actually owes..

The formula for this Average Tax Rate = Total Taxes / Total Taxable Income

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