Compute the income tax liability for each of the following u

Compute the income tax liability for each of the following unrelated C corporations.

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a. Darter Corporation has taxable income of $57,500.
$

b. Owl Corporation has taxable income of $13,036,000.
$

c. Toucan Corporation, a personal service corporation, has taxable income of $845,000.
$

Answer

a ) taxable income = 57500

income tax of above 50000 = 7500 + 25%

= 57500 - 50000

= 7500 * 25%

= 1875

= 7500 + 1875

= 9375

b ) taxable income = 13036000

income tax of 10000000 = 3400000 + 35%

= 13036000 - 10000000

= 3036000 * 35%

= 1062600

= 3400000 +1062600

= 4462600

C ) taxable income = 845000

income tax of over 335000 and less than 10000000 = 113900 + 34%

= 845000 - 335000

= 510000 * 34 %

= 173400

= 113900 +173400

= 346800