A corporation has a taxable income of $2,151,138. At this income level, the federal income rate is 52%, the state tax rate is 18%, and the local tax rate is 14%. If each tax rate is applied to the the total taxable income, the company would have to pay $2,151,138 * 0.14 in local taxes. Luckily for the corporation, the taxes paid are deducted as described above. How much is paid in local taxes if the customary deductions are taken into consideration? Round to the nearest dollar. LA $
A corporation has a taxable income of $2,151,138. At this income level, the federal income rate is 52%, the state tax rate is 18%, and the local tax rate is 14%. If each tax rate is applied to the the total taxable income, the company would have to pay $2,151,138 * 0.14 in local taxes. Luckily for the corporation, the taxes paid are deducted as described above. How much is paid in local taxes if the customary deductions are taken into consideration? Round to the nearest dollar. LA $
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter13: Corporations: Earning & Profits And Distributions
Section: Chapter Questions
Problem 10P
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15-7
Transcribed Image Text:A corporation has a taxable income of $2,151,138. At this
income level, the federal income rate is 52%, the state tax
rate is 18%, and the local tax rate is 14%. If each tax rate is
applied to the the total taxable income, the company would
have to pay $2,151,138 * 0.14 in local taxes. Luckily for
the corporation, the taxes paid are deducted as described
above. How much is paid in local taxes if the customary
deductions are taken into consideration?
Round to the nearest dollar.
LA
$
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