Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4.4 The Robbins Corporation's tax liability for the year is $ The firm's average tax rate is % The firm's marginal tax rate is %

4.4

image text in transcribedimage text in transcribed

The Robbins Corporation's tax liability for the year is $

The firm's average tax rate is %

The firm's marginal tax rate is %

(Corporate income tax) The Robbins Corporation is an oil wholesaler. The firm's sales last year were $1.07 million, with the cost of goods sold equal to $650,000. The firm paid interest of $212,000 and its cash operating expenses were $101,000. Also, the firm received $44,000 in dividend income from a firm in which the firm owned 22% of the shares, while paying only $11,000 in dividends to its stockholders. Depreciation expense was $48,000. Use the corporate tax rates shown in the popup window, to compute the firm's tax iability. What are the firm's average and marginal tax rates? \begin{tabular}{l|l} \hline \multicolumn{1}{l|}{ Taxable Income } & Marginal Tax Rate \\ \hline$0$50,000 & 15% \\ \hline$50,001$75,000 & 25% \\ \hline$75,001$100,000 & 34% \\ \hline$100,001$335,000 & 39% \\ \hline$335,001$10,000,000 & 34% \\ \hline$10,000,001$15,000,000 & 35% \\ \hline$15,000,001$18,333,333 & 38% \\ \hline Over $18,333,333 & 35% \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Principles And Practice

Authors: Timothy Gallagher

6th Edition

1930789157, 978-1930789159

More Books

Students also viewed these Finance questions

Question

What has been your desire for leadership in CVS Health?

Answered: 1 week ago

Question

Question 5) Let n = N and Y Answered: 1 week ago

Answered: 1 week ago