1) Suppose your firm earns $9 million in taxable income. What is the firm's tax liability? What is the average tax rate? What is the marginal tax rate? 50,000 15% 50,001 - 75,000 25% 75,001- 100,000. 34% 100,001-335,000 39% 335,001-10,000,000 34% 10,000,001-15,000,000. 35% 15,000,001-18,333,333 38% 18,333,334- 34%

1) Suppose your firm earns $9 million in taxable income. What is the firm's tax liability? What is the average tax rate? What is the marginal tax rate? 50,000 15% 50,001 - 75,000 25% 75,001- 100,000. 34% 100,001-335,000 39% 335,001-10,000,000 34% 10,000,001-15,000,000. 35% 15,000,001-18,333,333 38% 18,333,334- 34%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8MC: A company has wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be...

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Similar questions

Given the information below, what is the marginal tax rate if a firm has taxable income of $160,000? Taxable Income Tax Rate 0- 50,000 15% 50,001- 75,000 25% 75,001- 100,000 34% 100,001- 335,000 39%
Example: Marginal Vs. Average Rates Suppose your firm earns $4 million in taxable income. What is the firm's tax liability? ● ● What is the average tax rate? What is the marginal tax rate? 50,000*0.15 25,000*0.25 25000*0.34 235000*0.39 (4,000,000-335,000) *0.34 Total tax liability Average tax rate Marginal tax rate 7,500 6,250 8,500 91,650 1,246,100 1,360,000 If f you are considering a project that will increase the firm's taxable income by $1 million, what tax rate should you use in your analysis? Is it marginal or average tax rate that is normally relevant for financial decision making? 34% 34%
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Given the tax rates as shown, what is the marginal and average tax rates for a firm with taxable income of $102,000? Taxable Income Tax Rate $0-50,000 15% $50,001-75,000 25% $75,001-100,000 34% $100,001-335,000 39%
Given this tax table, what is the average tax rate for a firm with taxable income of $160,000? Taxable Income Tax Rate 0- 50,000 15% 50,001- 75,000 25% 75,001- 100,000 34% 100,001- 335,000 39%
The tax rates for a particular year are shown below: $0 - 50,000 Taxable Income Tax Rate 15 % 25 % 34 % 50,00175,000 75,001 100,000 - 100,001 - 335,000 39 % What is the average tax rate for a firm with taxable income of $125,013? (enter just the numbers. e.g., enter 15.56% as 15.56.)
Based on the information provided, answer the following questions: A. A firm has a taxable income of $16.2 million, its marginal tax rate is? B. A firm has a taxable income of $16.2 million, its average tax rate is?
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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
The tax rates for a particular year are shown below: Taxable Income Tax Rate $0 - 50,000 15% 50,001 - 75,000 25% 75,001 - 100,000 34% 100,001 - 335,000 39% What is the average tax rate for a firm with taxable income of $128,013?
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1 Calculate the Tax implications if the company has earnings before taxes of $ 350,000.00 Both if the company is a Corporation or Sole proprietorship What is the total taxes, average rate and the marginal tax rate Corporate Tax Rate: Total Taxes as Coorporation Personal Marginal Income Tax Rates: Single: Taxable Income Over--- 0 9,525 38,700 82,500 157,500 200,000 500,000 Total Tax Paid Marginal Tax Rate Average Tax Rate Taxable Income 350000 But not over Over--- 0 9,525 38,700 82,500 157,500 200,000 500,000 === 9,525 38,700 82,500 157,500 200,000 500,000 But not over --- 9,525 38,700 82,500 157,500 200,000 500,000 Marginal Tax Rate 10% 12% 22% 24% 32% 35% 37% Marginal Tax Rate 10% 12% 22% 24% 32% 35% 37% 21% Difference Incremental Taxes Cumulative Taxes