# F317+Study+Guide+5+Tax+Answers - Chapter 3 ORGANIZING AND...

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ORGANIZING AND FINANCING A NEW VENTURE Table A: Cumulative Income Tax Calculations by Taxable Income Bracket Income Tax Calculations—2007 Law Personal Income Taxes A. Married Filing Jointly Taxable Income Bracket Marginal Amount Cumulative Beg Value End Value Amount Tax Rate of Taxes Taxes 1 15,650 15,650 0.10 1,565.00 1,565.00 15,651 63,700 48,050 0.15 7,207.50 8,772.50 63,701 128,500 64,800 0.25 16,200.00 24,972.50 128,501 195,850 67,350 0.28 18,858.00 43,830.50 195,851 349,700 153,850 0.33 50,770.50 94,601.00 Over 349,700 0.35 B. Single Taxable Income Bracket Marginal Amount Cumulative Beg Value End Value Amount Tax Rate of Taxes Taxes 1 7,825 7,825 0.10 782.50 782.50 7,826 31,850 24,025 0.15 3,603.75 4,386.25 31,851 77,100 45,250 0.25 11,312.50 15,698.75 77,101 160,850 83,750 0.28 23,450.00 39,148.75 160,851 349,700 188,850 0.33 62,320.50 101,469.25 Over 349,700 0.35 Corporate Income Taxes Taxable Income Bracket Marginal Amount Cumulative Beg Value End Value Amount Tax Rate of Taxes Taxes 1 50,000 50,000 0.15 7,500.00 7,500.00 50,001 75,000 25,000 0.25 6,250.00 13,750.00 75,001 100,000 25,000 0.34 8,500.00 22,250.00 100,001 335,000 235,000 0.39 91,650.00 113,900.00 335,001 10,000,000 9,665,000 0.34 3,286,100.00 3,400,000.00 10,000,001 15,000,000 5,000,000 0.35 1,750,000.00 5,150,000.00 15,000,001 18,333,333 3,333,333 0.38 1,266,666.54 6,416,666.54 Over 18,333,333 0.35 The cumulative taxes for a stated ending value or amount of taxable income can be used to reduce the amount of calculations in the problem/supplemental problem solutions presented below. 35

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F317+Study+Guide+5+Tax+Answers - Chapter 3 ORGANIZING AND...

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