Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Amazon had Taxable Income of 13,500,000 in 2009. Calculate the amount of corporate taxes Amazon paid in 2009. Thus, a corporation earning more than $18,333,333

Amazon had Taxable Income of 13,500,000 in 2009. Calculate the amount of corporate taxes Amazon paid in 2009.

image text in transcribed

Thus, a corporation earning more than $18,333,333 and paying a 40% marginal federal plus state tax rate would normally pay only (0.30) (0.4) = 0.12 = 12% of its dividend income as taxes. If this firm had $10,000 in pretax (B-T) dividend income, its after-tax (A-T) dividend income would be $8,800

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

Standards Of Value

Authors: Jay E. Fishman, Shannon P. Pratt, William J. Morrison

2nd Edition

1118138538, 978-1118138533

More Books

Students also viewed these Finance questions