What is the effective tax rate that a company will end up paying if their year income is $16.7 million? The tax needs to be calculated based on the table shown below: FromBelowTax+ Marginal additional tax$0$50,00015% $50,000$75,000$7,500+ 25% over $50,000$75,000$100,000$13,750+ 34% over $75,000$100,000$335,000$22,250+ 39% over $100,000$335,000$10,000,000$113,900+ 34% over $335,000$10,000,000$15,000,000$3,400,000+ 35% over $10,000,000$15,000,000$18,333,333$5,150,000+ 38% over $15,000,000Group of answer choices27.4483%34.1007%34.0000%34.7066%

The tax has to be paid by companies if they are earning an income more than the exemption limit. In…

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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 is the effective tax rate that a company will end up paying if their year income is $16.7 million? The tax needs to be calculated based on the table shown below:

From	Below	Tax	+ Marginal additional tax
$0	$50,000	15%
$50,000	$75,000	$7,500	+ 25% over $50,000
$75,000	$100,000	$13,750	+ 34% over $75,000
$100,000	$335,000	$22,250	+ 39% over $100,000
$335,000	$10,000,000	$113,900	+ 34% over $335,000
$10,000,000	$15,000,000	$3,400,000	+ 35% over $10,000,000
$15,000,000	$18,333,333	$5,150,000	+ 38% over $15,000,000