Corporation Growth has $77,000 in taxable income, and Corporation Income has $7,
ID: 2644888 • Letter: C
Question
Corporation Growth has $77,000 in taxable income, and Corporation Income has $7,700,000 in taxable income.
What is the tax bill for each firm?
Suppose both firms have identified a new project that will increase taxable income by $11,000. How much in additional taxes will each firm pay?
use this tax table...
Corporation Growth has $77,000 in taxable income, and Corporation Income has $7,700,000 in taxable income.
a.What is the tax bill for each firm?
Firms Tax Bill Corporation Growth $ Corporation Income b.Suppose both firms have identified a new project that will increase taxable income by $11,000. How much in additional taxes will each firm pay?
Firms Additional taxes Corporation Growth $ Corporation Incomeuse this tax table...
Explanation / Answer
What is the tax bill for each firm?
Tax Bill for Corporation Growth Firm = 50000*15% + 25000*25% + 2000*34%
Tax Bill for Corporation Growth Firm = $ 14,430
Tax Bill for Corporation Income Firm = 50000*15% + 25000*25% + 25000*34% + 235000*39% + 7365000*34%
Tax Bill for Corporation Income? Firm = $ 2,618,000
b.
Suppose both firms have identified a new project that will increase taxable income by $11,000. How much in additional taxes will each firm pay?
Additional taxes for Corporation Growth Firm = 11000*34% = $ 3740
Additional taxes for Corporation Income Firm = 11000*34% = $ 3740
a.What is the tax bill for each firm?