Sales for J. P. Hulett Inc. during the past year amounted to $4.3 million. Gross profits totaled $1.06 million, and operating and depreciation expenses were $493,000 and $357,000, respectively. Dividend income for the year was $11,000, which was paid by a firm in which Hulett owns 85 percent of the shares. Use the corporate tax rates shown in the popup window, Taxable Income Marginal Tax Rate $0−$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% Over $18,333,333 35% to Comcute the corporation's tax liability. What are thefirm's average and marginal tax rates?
Sales for J. P. Hulett Inc. during the past year amounted to
$4.3
million. Gross profits totaled
$1.06
million, and operating and depreciation expenses were
$493,000
and
$357,000,
respectively. Dividend income for the year was
$11,000,
which was paid by a firm in which Hulett owns
85
percent of the shares. Use the corporate tax rates shown in the popup window,
|
Taxable Income |
Marginal Tax Rate |
|---|---|
|
$0−$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% |
|
Over $18,333,333 |
35% |
to Comcute the corporation's tax liability. What are thefirm's average and marginal tax rates?
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