74 CHAPTER 3 I Financial Statements Cash Flows and Taxes EXH

74 CHAPTER 3 I Financial Statements, Cash Flows, and Taxes EXHIBIT 3.6 Corporate Tax Rates for 2012 he federal corporate marginal tax rate varies from 15 to 39 percent. Generally speaking, smaller companies with lower taxa income have lower tax rates than larger companies with higher taxable incomes. Smaller businesses are given preferential treatment to encourage new business formation Pay This Amount on the Base of the Bracket Marginal Tax Rate: Tax Rate on the Excess Over the Base Average Tax Rate at Top of Bracket Corporations\' Taxable Income $0-$50,000 50,001-75,000 75,001-100,000 100,001-335,000 335,001-10,000,000 10,000,001-15,000,000 15,000,001-18,333,333 More than 18,333,333 1590 25 34 39 34 35 38 35 15.0% 7,500 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 18.3 22.3 34.0 34.0 34.3 35.0 35.0

Solution

50,001?75,000

8500

75,001?100,000

100,001?335,000

335,001?10,000,000

10,000,001?15,000,000

15,000,001?18,333,333

Tax Rate	Tax
15	7500	$0 - 50000
25	6250	50,001?75,000
34	8500	75,001?100,000
39	91650	100,001?335,000
34	341020	335,001?10,000,000
35		10,000,001?15,000,000
38		15,000,001?18,333,333
35		More than $18,333,333
	$ 454920