Calculate the Tax Liability Taxable Income and Tax Rate 0500

Calculate the Tax Liability Taxable Income and Tax Rate

$0-50,000 15% $50,000-75,000 25 75,000-100,000 34 100,000-335,000 39 335,000-10,000,000 34 10,000,000-15,000,000 35 15,000,000-18,333,333 38 18,333,333+ 35

If Brian’s Dog Kennel had $184542 in net income last year, what is the tax liability (or taxes due) for Brian\'s Dog Kennel?

Select one: a. $110000 b. $55221 c. $184542 d. $71971

Solution

Tax liability=($50000*0.15)+($25000*0.25)+($25000*0.34)+(84542*0.39)

which is equal to

=$55221(Approx).

NOTE:The first $50000 will be taxed at 15%;the next(75000-50000)=$25000 at 25% and so on.The final balance (184542-100,000)=$84542 will be taxed at 39%.