Last year, Martyn Company had $500,000 in taxable income from its operations, $50,000 in interest income, and $100,000 in dividend income. Using the corporate tax rate table given below, what was the company's tax liability for the year? Taxable income:0-50,00050.000-75,00075,000-100,000100.000-335.000335.000-10.000.00010M-15M15M-18.333.333Over 18.333.333Tax on base of bracket:0750013,75022,250113.9003,400,0005,150,0006.416,667% on excess above base:15%25343934353835

Note : 70% DIVIDEND INCOME IS EXCLUDED while calculating tax income TAXABLE SLAB IS 34% for…

year, Martyn Company had $500,000 in taxable income from its operations, $50,000 in interest income, and $100,000 in dividend income. Using the corporate tax rate table given below, what was the company's tax liability for the year?

year, Martyn Company had $500,000 in taxable income from its operations, $50,000 in interest income, and $100,000 in dividend income. Using the corporate tax rate table given below, what was the company's tax liability for the year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Last year, Martyn Company had $500,000 in taxable income from its operations, $50,000 in interest income, and $100,000 in dividend income. Using the corporate tax rate table given below, what was the company's tax liability for the year?

Taxable income:
0-50,000
50.000-75,000
75,000-100,000
100.000-335.000
335.000-10.000.000
10M-15M
15M-18.333.333
Over 18.333.333
Tax on base of bracket:
0
7500
13,750
22,250
113.900
3,400,000
5,150,000
6.416,667
% on excess above base:
15%
25
34
39
34
35
38
35

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