paid in local taxes i

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter2: Financial Statements, Cash Flow,and Taxes
Section: Chapter Questions
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A corporation has a taxable income of $2,039,602. At this income level, the federal income rate is 50%, the state tax rate is 20%, and the local tax rate is 11%. If each tax rate is applied to the the total taxable income, the company would have to pay $2,039,602 * 0.11 in local taxes. Luckily for the corporation, the taxes paid are deducted as described above. How much is paid in local taxes if the customary deductions are taken into consideration?
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