Chapter 18.III, Problem 27RE

BuyFind*arrow_forward*

8th Edition

Robert Brechner + 1 other

ISBN: 9781305585447

Textbook Problem

Calculate the amount of corporate income tax due and the net income after taxes for the following corporations.

Net Income |
||||||||

Name |
Taxable Income |
Tax Liability |
after Taxes |
|||||

27. | Universal Holdings, Inc. | $88,955 | _________ | _________ |

To determine

**To calculate:** The amount of corporate income tax if the Company U has the taxable income of $88,955.

Explanation

**Given Information:**

The Company U has the taxable income of $88,955.

**Formula used:**

The formulas used for the calculation is listed below:

**Calculation:**

Taxable income is defined as the income to which tax rates are functional in order to discover the total amount of tax payable for the year. Corporate Tax rate schedule is the table which helps to calculate the income tax for the corporations.

The followings steps are used to calculate as listed below:

Step 1: Firstly, with the help of corporate tax schedule, it is needed to find the range which covers the taxable income of the corporations. Here, the taxable income is $88,955 so Aâ€™s net income falls in the range

Step 2: Now it is needed to subtract the taxable income from the lowest number of the range. It can be seen as done below:

Step 3: Now the amount resulted from step 2 gets multiplied by the tax rate provided within this range. It can be seen as done below:

Sect-18.I P-1TIESect-18.I P-2TIESect-18.I P-3TIESect-18.I P-4TIESect-18.I P-1RESect-18.I P-2RESect-18.I P-3RESect-18.I P-4RESect-18.I P-5RESect-18.I P-6RE

Sect-18.I P-7RESect-18.I P-8RESect-18.I P-9RESect-18.I P-10RESect-18.I P-11RESect-18.I P-12RESect-18.I P-13RESect-18.I P-14RESect-18.I P-15RESect-18.I P-16RESect-18.I P-17RESect-18.I P-18RESect-18.I P-19RESect-18.II P-5TIESect-18.II P-6TIESect-18.II P-7TIESect-18.II P-8TIESect-18.II P-9TIESect-18.II P-1RESect-18.II P-2RESect-18.II P-3RESect-18.II P-4RESect-18.II P-5RESect-18.II P-6RESect-18.II P-7RESect-18.II P-8RESect-18.II P-9RESect-18.II P-10RESect-18.II P-11RESect-18.II P-12RESect-18.II P-13RESect-18.II P-14RESect-18.II P-15RESect-18.II P-16RESect-18.II P-17RESect-18.II P-18RESect-18.II P-19RESect-18.II P-20RESect-18.III P-10TIESect-18.III P-11TIESect-18.III P-12TIESect-18.III P-13TIESect-18.III P-14TIESect-18.III P-1RESect-18.III P-2RESect-18.III P-3RESect-18.III P-4RESect-18.III P-5RESect-18.III P-6RESect-18.III P-7RESect-18.III P-8RESect-18.III P-9RESect-18.III P-10RESect-18.III P-11RESect-18.III P-12RESect-18.III P-13RESect-18.III P-14RESect-18.III P-15RESect-18.III P-16RESect-18.III P-17RESect-18.III P-18RESect-18.III P-19RESect-18.III P-20RESect-18.III P-21RESect-18.III P-22RESect-18.III P-23RESect-18.III P-24RESect-18.III P-25RESect-18.III P-26RESect-18.III P-27RESect-18.III P-28RESect-18.III P-29RESect-18.III P-30RECh-18 P-1CRCh-18 P-2CRCh-18 P-3CRCh-18 P-4CRCh-18 P-5CRCh-18 P-6CRCh-18 P-7CRCh-18 P-8CRCh-18 P-9CRCh-18 P-10CRCh-18 P-11CRCh-18 P-12CRCh-18 P-13CRCh-18 P-14CRCh-18 P-1ATCh-18 P-2ATCh-18 P-3ATCh-18 P-4ATCh-18 P-5ATCh-18 P-6ATCh-18 P-7ATCh-18 P-8ATCh-18 P-9ATCh-18 P-10ATCh-18 P-11ATCh-18 P-12ATCh-18 P-13ATCh-18 P-14ATCh-18 P-15ATCh-18 P-16ATCh-18 P-17ATCh-18 P-18ATCh-18 P-19ATCh-18 P-20ATCh-18 P-21ATCh-18 P-22ATCh-18 P-23ATCh-18 P-24ATCh-18 P-25ATCh-18 P-26ATCh-18 P-27ATCh-18 P-28ATCh-18 P-29ATCh-18 P-30AT

Calculus (MindTap Course List)

Elementary Geometry For College Students, 7e

Statistics for The Behavioral Sciences (MindTap Course List)

Essentials of Statistics for The Behavioral Sciences (MindTap Course List)

Essentials Of Statistics

Calculus: Early Transcendentals

Mathematical Excursions (MindTap Course List)

Single Variable Calculus: Early Transcendentals, Volume I

Multivariable Calculus

Precalculus: Mathematics for Calculus (Standalone Book)

Understanding Basic Statistics

Probability and Statistics for Engineering and the Sciences

Finite Mathematics

Elementary Technical Mathematics

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

Mathematical Applications for the Management, Life, and Social Sciences

Calculus: An Applied Approach (MindTap Course List)

Single Variable Calculus

Calculus: Early Transcendental Functions

Finite Mathematics and Applied Calculus (MindTap Course List)

Intermediate Algebra

Calculus of a Single Variable

Trigonometry (MindTap Course List)

Calculus: Early Transcendental Functions (MindTap Course List)

Elements Of Modern Algebra

Single Variable Calculus: Early Transcendentals

Study Guide for Stewart's Multivariable Calculus, 8th

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th

Elementary Geometry for College Students

Finite Mathematics for the Managerial, Life, and Social Sciences

Multivariable Calculus

Research Methods for the Behavioral Sciences (MindTap Course List)

STATISTICS F/BUSINESS+ECONOMICS-TEXT

Mathematics: A Practical Odyssey

Mathematics For Machine Technology

College Algebra (MindTap Course List)

Research Methods for the Behavioral Sciences (MindTap Course List)

Calculus (MindTap Course List)

Statistics for Business & Economics, Revised (MindTap Course List)

Introduction To Statistics And Data Analysis