2. Table is given below shows that marginal tax rates for Alejandro Corporation. Taxable Income of the Company is equal to $44.000. How much will the Company pay tax totally? Average tax rate? (15p) NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS. Taxable Income (S) 0- 16.000 Tax Rate 10% 16.000 – 39.000 12% 39.000 – 55.000 16% 55.000 – 70.000 19% 70.000 – 86.000 23%

2. Table is given below shows that marginal tax rates for Alejandro Corporation. Taxable Income of the Company is equal to $44.000. How much will the Company pay tax totally? Average tax rate? (15p) NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS. Taxable Income (S) 0- 16.000 Tax Rate 10% 16.000 – 39.000 12% 39.000 – 55.000 16% 55.000 – 70.000 19% 70.000 – 86.000 23%

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter3: Organizing And Financing A New Venture

Section: Chapter Questions

Problem 7EP

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Similar questions

Barth James Inc. has the following deferred tax assets and liabilities: 12,000 noncurrent deferred tax asset, and 10,500 noncurrent deferred tax liability. Show how Barth James would report these deferred tax assets and liabilities on its balance sheet.
LO.3, 4, 5 Contrast the income taxation of individuals and C corporations as to: a. Alternative minimum tax. b. Dividend income. c. Qualified business income deduction of 20 percent. d. Use of the cash method of accounting. e. Accounting period used for tax purposes. f. Applicable tax rates. g. Due date of the tax return.

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