Chapter 3 & 4 Supplement

Chapter 3 & 4 Supplement - Corporate Income Taxes...

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Corp. Taxable Income Tax At Least But < Rate Tax Calculation $ 0 $ 50,000 15% .15x(Inc > 0) 50,000 75,000 25% $ 7,500 + .25x(Inc > 50,000) 75,000 100,000 34% 13,750 + .34x(Inc > 75,000) 100,000 335,000 39% 22,250 + .39 x(Inc > 100,000 ) 335,000 10,000,000 34% 113,900 + .34x(Inc > 335,000) 10,000,000 15,000,000 35% 3,400,000 + .35x(Inc > 10,000,000) 15,000,000 18,333,333 38% 5,150,000 + .38x(Inc > 15,000,000) 18,333,333 35% 6,416,667 + .35x(Inc > 18,333,333) Corporate Income Taxes
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MARGINAL Tax Rate TAX RATE that is applied to EACH income bracket to compute the amount of tax DUE. What is the marginal tax rate for a firm with taxable income of $150,000? What is the marginal tax rate for a firm with a taxable income of $20M?
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AVERAGE Tax Rate? Taxes actually paid Taxable income
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Average Tax Rate What’s the average tax rate for a firm with $65,000 of taxable income?
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Marginal vs. Average Tax Rates Question: A corporation has taxable income of $225,000. What is the corporation’s average tax rate ?
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This note was uploaded on 03/10/2012 for the course CHFS 250 taught by Professor Darnt during the Spring '08 term at University of Tennessee.

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Chapter 3 &amp;amp; 4 Supplement - Corporate Income Taxes...

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