{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 3 &amp; 4 Supplement

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

This preview shows pages 1–9. Sign up to view the full content.

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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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?
AVERAGE Tax Rate? Taxes actually paid Taxable income

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Average Tax Rate What’s the average tax rate for a firm with \$65,000 of taxable income?
Marginal vs. Average Tax Rates Question: A corporation has taxable income of \$225,000. What is the corporation’s average tax rate ?

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Marginal vs. Average Tax Rates Question: A corporation has taxable income of \$225,000. What is the corporation’s marginal tax rate?
Marginal vs. Average Tax Rates Question: Which tax rate does one consider when making investment decisions?

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Double Taxation ABC Corp
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}