e given here e eamings beforetas 14400 60700 89600 196000 40

e given here e eamings beforetas: $14400: $60,700, $89.600: $196,000: $403,00; $1.9 millin, an inal tax rate for the following levels of corporate taes $144 levels (measured on tho x axois, Explain the relationship between thes t the More Info Corporate Tax Rate Schedule Tax calculation Range of taxable income Base tax (Marginal rate x amount over base bracket) $0 to 50,000 to 75,000 to 100,000 to 335,000 to $50,000 75,000 100,000 335,000 10,000,000 to 15,000,000 18,333,333 $0 + (15% × amount over 7,500 + (25% x amount over 13,750 + (34% amount over 22.250 + (39% x amount over 113,900 + (34% × amount over 3,400,000 + (35% x amount over 5,150,000 + (38% x amount over 6,416,667 + (35% x amount over $0) 50,000) 75,000) 100,000) 335,000) 10,000,000) 15,000,000) 18,333,333) 1 15,000,000 to Over 18,333,333 Print Done ate for earnings before taxes of $1.9 million is %. Round to the nearest integer. ur answer(s)

Solution

a. Marginal tax rate of earnings before 14400 is

Taxes for income of 14400 is = 2160

Marginal tax rate of 60700= 25%

Tax is 10175

Marginal rate for 89600 is 34%

Tax is 18714

Marginal rate for 196000 is 39%

Tax is 59690

Marginal rate for 403000 is 34%

Tax is:

Marginal rate for 1.9 million is 34%

Tax is:

Pretax income

14,400

Taxable Income

Tax

Tax calculated

Is over

But not over

Base tax

plus

Base tax

+

plus

=

Tax

-

50,000

0

15% of

income

-

+

15% *

14,400

=

2,160