Homework SourseGiven the following tax schedule what is the tax liability f
Given the following tax schedule, what is the tax liability for a corporation with taxable income of $8 million
Corporate Tax Rates. Taxable Income
15%. $0-50,000
25%. $50,001-75,000
34%. $75,001-10,000,000
35%. Over $10,000,000
A $2,715,000
B $2,720,000
C $2,694,500
D $2,708,250
Given the following tax schedule, what is the tax liability for a corporation with taxable income of $8 million
Corporate Tax Rates. Taxable Income
15%. $0-50,000
25%. $50,001-75,000
34%. $75,001-10,000,000
35%. Over $10,000,000
A $2,715,000
B $2,720,000
C $2,694,500
D $2,708,250
Corporate Tax Rates. Taxable Income
15%. $0-50,000
25%. $50,001-75,000
34%. $75,001-10,000,000
35%. Over $10,000,000
A $2,715,000
B $2,720,000
C $2,694,500
D $2,708,250
Solution
Correct option is > D $2,708,250
Tax rate
Income (Split of $8 m)
Income x Tax rate
15%
$50,000.00
$7,500.00
25%
$25,000.00
$6,250.00
34%
$7,925,000.00
$2,694,500.00
Total = Taxability =
$2,708,250.00
$8 million will be split in three parts as per slab:
$50000 ; $ 25000 and Balance $7925000 ($8000000-$50000-$25000)
15%*50000 + 25%*25000 + 34%*7925000
| Tax rate | Income (Split of $8 m) | Income x Tax rate |
| 15% | $50,000.00 | $7,500.00 |
| 25% | $25,000.00 | $6,250.00 |
| 34% | $7,925,000.00 | $2,694,500.00 |
| Total = Taxability = | $2,708,250.00 |
