Corporate Tax Rate ScheduleTax calculationRange of taxable incomeBase tax(Marginal ratex amount over base bracket)$0 to(15%(25%(34%(39%(34%(35%(38%(35%$50,000$0$0)50,000)75,000)100,000)335,000)10,000,000)15,000,000)18,333,333)+x amount over50,000 to75,0007,500x amount over+75,000 to100,000 to100,00013,75022,250x amount overx amount over+335,000335,000 to10,000,000113,900x amount over10,000,000 to15,000,0003,400,000x amount over15,000,000 to18,333,3335,150,000x amount overOver 18,333,3336,416,667x amount over+ Average corporate tax rates Using the corporate tax rate schedule given here i, perform the following:a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of corporate earnings before taxes: $12,000; $81,300; $295,000; $502,000; $1.7 million; $9.1million; and $20.3 million.b. Plot the average tax rates (measured on the y axis) against the pretax income levels (measured on the x axis). What generalization can be made concerning the relationship betweenthese variables?....a. Find the marginal tax rate for the following levels of corporate earnings before taxes: $12,000; $81,300; $295,000; $502,000; $1,700,000; $9.1 million; and $20.3 million.The tax liability for earnings before taxes of $12,000 is $ 1800 . (Round to the nearest dollar.)The after-tax earnings on $12,000 are $ 10200. (Round to the nearest dollar.)The average tax rate for the $12,000 in pretax earnings is 15 %. (Round to one decimal place.)The tax liability for earnings before taxes of $81,300 is $(Round to the nearest dollar.)

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The tax liability for earnings before taxes of $81,300 is $ (Round to the nearest dollar.)

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter20: Corporations And Partnerships

Section: Chapter Questions

Problem 6DQ: LO.3, 4, 5 Contrast the income taxation of individuals and C corporations as to: a. Alternative...

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Question

Corporate Tax Rate Schedule
Tax calculation
Range of taxable income
Base tax
(Marginal ratex amount over base bracket)
$0 to
(15%
(25%
(34%
(39%
(34%
(35%
(38%
(35%
$50,000
$0
$0)
50,000)
75,000)
100,000)
335,000)
10,000,000)
15,000,000)
18,333,333)
+
x amount over
50,000 to
75,000
7,500
x amount over
+
75,000 to
100,000 to
100,000
13,750
22,250
x amount over
x amount over
+
335,000
335,000 to
10,000,000
113,900
x amount over
10,000,000 to
15,000,000
3,400,000
x amount over
15,000,000 to
18,333,333
5,150,000
x amount over
Over 18,333,333
6,416,667
x amount over
+

Average corporate tax rates Using the corporate tax rate schedule given here i, perform the following:
a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of corporate earnings before taxes: $12,000; $81,300; $295,000; $502,000; $1.7 million; $9.1
million; and $20.3 million.
b. Plot the average tax rates (measured on the y axis) against the pretax income levels (measured on the x axis). What generalization can be made concerning the relationship between
these variables?
....
a. Find the marginal tax rate for the following levels of corporate earnings before taxes: $12,000; $81,300; $295,000; $502,000; $1,700,000; $9.1 million; and $20.3 million.
The tax liability for earnings before taxes of $12,000 is $ 1800 . (Round to the nearest dollar.)
The after-tax earnings on $12,000 are $ 10200. (Round to the nearest dollar.)
The average tax rate for the $12,000 in pretax earnings is 15 %. (Round to one decimal place.)
The tax liability for earnings before taxes of $81,300 is $
(Round to the nearest dollar.)

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