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2017 Corporate Tax Rates If a Corporation's Taxable Income Is It Pays This Amount on the Base of the Bracket Plus This Percentage on the
2017 Corporate Tax Rates | |||
If a Corporation's Taxable Income Is | It Pays This Amount on the Base of the Bracket | Plus This Percentage on the Excess over the Base (Marginal Rate) | Average Tax Rate at Top of Bracket |
Up to $50,000 | $0 | 15.0% | 15.0% |
$50,000 - $75,000 | 7,500 | 25.0 | 18.3 |
$75,000 - $100,000 | 13,750 | 34.0 | 22.3 |
$100,000 - $335,000 | 22,250 | 39.0 | 34.0 |
$335,000 - $10,000,000 | 113,900 | 34.0 | 34.0 |
$10,000,000 - $15,000,000 | 3,400,000 | 35.0 | 34.3 |
$15,000,000 - $18,333,333 | 5,150,000 | 38.0 | 35.0 |
Over $18,333,333 | 6,416,667 | 35.0 | 35.0 |
Quantitative Problem: Andrews Corporation has income from operations of $246,000. In addition, it received interest income of $24,600 and received dividend income of $28,400 from another corporation. Finally, it paid $11,800 of interest income to its bondholders and paid $41,000 of dividends to its common stockholders. Using the 2017 corporate tax schedule, what is the firms federal income tax? Round your intermediate and final answers to the nearest cent.
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