FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Data table
Corporate Tax Rates
15%
25%
34%
35%
$0-$50,000
$50,001 $75,000
$75,001-$10,000,000
over $10,000,000
Additional surtax:
• 5% on income between $100,000 and $335,000
• 3% on income between $15,000,000 and $18,333,333
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Transcribed Image Text:Data table Corporate Tax Rates 15% 25% 34% 35% $0-$50,000 $50,001 $75,000 $75,001-$10,000,000 over $10,000,000 Additional surtax: • 5% on income between $100,000 and $335,000 • 3% on income between $15,000,000 and $18,333,333 (Click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet.) Print Done - X
(Corporate income tax) Sandersen Inc. sells minicomputers. During the past year the company's sales were $3.1 million
The cost of its merchandise sold came to $1.9 million, and cash operating expenses were $404,000; depreciation
expense was $95,000, and the firm paid $149,000 in interest on its bank loans. Also, the corporation received $47,000
in dividend income but paid $20,000 in the form of dividends to its own common stockholders. Calculate the
corporation's tax liability by using the corporate tax rate structure in the popup window,
Calculate the gross profits.
The gross profits are $. (Round to the nearest dollar.)
Calculate the operating profits.
The operating profits are $[
Calculate the taxable dividend income.
The taxable dividend income is $
Calculate the taxable ordinary income.
The taxable ordinary income is $. (Round to the nearest dollar.)
Calculate the total tax due.
The total tax due is $
(Round to the nearest dollar.)
(Round to the nearest dollar.)
(Round to the nearest dollar.)
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Transcribed Image Text:(Corporate income tax) Sandersen Inc. sells minicomputers. During the past year the company's sales were $3.1 million The cost of its merchandise sold came to $1.9 million, and cash operating expenses were $404,000; depreciation expense was $95,000, and the firm paid $149,000 in interest on its bank loans. Also, the corporation received $47,000 in dividend income but paid $20,000 in the form of dividends to its own common stockholders. Calculate the corporation's tax liability by using the corporate tax rate structure in the popup window, Calculate the gross profits. The gross profits are $. (Round to the nearest dollar.) Calculate the operating profits. The operating profits are $[ Calculate the taxable dividend income. The taxable dividend income is $ Calculate the taxable ordinary income. The taxable ordinary income is $. (Round to the nearest dollar.) Calculate the total tax due. The total tax due is $ (Round to the nearest dollar.) (Round to the nearest dollar.) (Round to the nearest dollar.)
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