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 $615255 in net income last year, what is the tax liability (or taxes due) for Brian\'s Dog Kennel?

Select one:

a. $113900

b. $314849

c. $223199

d. $323087

e. $209187

Solution

Total tax liability=(50000*0.15)+(25000*0.25)+(25000*0.34)+(235000*0.39)+(280255*0.34)

Which is equal to

=$209187(approx).

Note:

The first $50000 will be taxed at 15%,the next (75000-50000)=$25000 at 25% and so on.The final balance amount of (615255-335000)=$280255 will be taxed at 34%