year, Martyn Company had $500,000 in taxable income from its operations, $50,000 in interest income, and $100,000 in dividend income. Using the corporate tax rate table given below, what was the company's tax liability for the year?
year, Martyn Company had $500,000 in taxable income from its operations, $50,000 in interest income, and $100,000 in dividend income. Using the corporate tax rate table given below, what was the company's tax liability for the year?
Chapter28: Income Taxation Of Trusts And Estates
Section: Chapter Questions
Problem 13CE
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Question
Last year, Martyn Company had $500,000 in taxable income from its operations, $50,000 in interest income, and $100,000 in dividend income. Using the corporate tax rate table given below, what was the company's tax liability for the year?
Transcribed Image Text:Taxable income:
0-50,000
50.000-75,000
75,000-100,000
100.000-335.000
335.000-10.000.000
10M-15M
15M-18.333.333
Over 18.333.333
Tax on base of bracket:
0
7500
13,750
22,250
113.900
3,400,000
5,150,000
6.416,667
% on excess above base:
15%
25
34
39
34
35
38
35
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