Homework SourseFighting Dyer Inc had taxable income of 196 million Calculat
Fighting Dyer Inc. had taxable income of $19.6 million. Calculate Fighting Dyer\'s federal income taxes by using the corporate tax rate structure:
Corporate Tax Rates
15%
$0-$50,000
25%
$50,001-$75,000
34%
$75,001-$10,000,000
35%
over $10,000,000
Additional surtax:
•5% on income between $100,000 and $335,000
•3% on income between $15,000,000 and $18,333,333
.Total tax due is$ (Round to the nearest dollar.)
| Corporate Tax Rates | |
| 15% | $0-$50,000 |
| 25% | $50,001-$75,000 |
| 34% | $75,001-$10,000,000 |
| 35% | over $10,000,000 |
| Additional surtax: | |
| •5% on income between $100,000 and $335,000 | |
| •3% on income between $15,000,000 and $18,333,333 |
Solution
Total Tax = Coorporate tax + Surtax
Surtax for $19.6 = $0
Therefore Total tax = .35 * 19,600,000 = $6,860,000
