What is the tax liability (as a percentage of taxable income) if the customary deductions are taken into consideration? %. Round to the nearest tenth of a percent (one decimal place).
What is the tax liability (as a percentage of taxable income) if the customary deductions are taken into consideration? %. Round to the nearest tenth of a percent (one decimal place).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A corporation has a taxable income of $7,110,512. At this income level, the federal income rate is 53%, the state tax rate is 19%, and the local tax rate is 14%. If each tax rate is applied to the the total taxable income, the resulting tax liability for the corporation would be (53 + 19 + 14)%. Luckily for the corporation, the taxes paid are deducted as described above. What is the tax liability (as a percentage of taxable income) if the customary deductions are taken into consideration?
%. Round to the nearest tenth of a percent (one decimal place).
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