Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 9, Problem 50P
To determine
Calculate the additional taxable income.
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Determine the single-value effective tax rate for a corporation that has a federal tax rate of 35% and state tax rate of 7%.
Refer to the table below:
2020 Tax Data
Tax Bracket
Marginal Tax Rate
$0-9,875
10%
$9,876-40,125
12%
$40,126-85,525
22%
$85,526-163,300
24%
$163,301-207,350
32%
$207,351-518,400
35%
Over $518,400
37%
Compute the taxes on a taxable income of $250,000.
Instructions: For part a, enter your response as a whole number. For part b, round your response to one decimal place.
a. What is the marginal tax rate?
35
%
b. What is the nominal tax rate?
14.1
For the following calculations the tax threshold is $1,500,000 and the taxable income is taxed at 25%. Statutory deductions total 7.5% of the gross salary or wages.You work as a production manager at a food processing plant and earn a gross monthly salary of $345,000.
i). Calculate your net monthly salary.
ii). In addition to your salary you receive a $300, 000 Christmas bonus. Your friend Marie, the marketing manager with a salary close to yours, receives the same bonus. Do the work necessary to show that the net bonuses are $202,500. iii). You use all of your net bonus to buy a motorcycle which depreciates at 11% p.a. at the end of each year. Calculate the value of your motorcycle at the end of 3 years.
iv). Marie invests her net bonus in a tax free retirement fund which pays 5.5% p.a. interest compounded monthly. Calculate the value of Marie’s investment at the end of 3 years.
Chapter 9 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6PCh. 9 - Prob. 7PCh. 9 - Prob. 8PCh. 9 - Prob. 9PCh. 9 - Prob. 10P
Ch. 9 - Prob. 11PCh. 9 - Prob. 12PCh. 9 - Prob. 13PCh. 9 - Prob. 14PCh. 9 - Prob. 15PCh. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24PCh. 9 - Prob. 25PCh. 9 - Prob. 26PCh. 9 - Prob. 27PCh. 9 - Prob. 28PCh. 9 - Prob. 29PCh. 9 - Prob. 30PCh. 9 - Prob. 31PCh. 9 - Prob. 32PCh. 9 - Prob. 33PCh. 9 - Prob. 34PCh. 9 - Prob. 35PCh. 9 - Prob. 36PCh. 9 - Prob. 37PCh. 9 - Prob. 38PCh. 9 - Prob. 39PCh. 9 - Prob. 40PCh. 9 - Prob. 41PCh. 9 - Prob. 42PCh. 9 - Prob. 43PCh. 9 - Prob. 44PCh. 9 - Prob. 45PCh. 9 - Prob. 46PCh. 9 - Prob. 47PCh. 9 - Prob. 48PCh. 9 - Prob. 49PCh. 9 - Prob. 50PCh. 9 - Prob. 51PCh. 9 - Prob. 52PCh. 9 - Prob. 53PCh. 9 - Prob. 1STCh. 9 - Prob. 2STCh. 9 - Prob. 3STCh. 9 - Prob. 4ST
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