Chapter 18.III, Problem 28RE

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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 |
|||||

28. | Evergreen Corp. | $14,550,000 |

To determine

**To calculate:** The amount of corporate income tax if the Company E has the taxable income of $14,550,000.

Explanation

**Given Information:**

The Company E has the taxable income of $14,550,000.

**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 $14,550,000 so Eâ€™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

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