Calculate TN Franchise and Excise tax:

Given the following:

Book value of property $ 3,000,000

Real estate rental 10,000/year

Net Worth 2,500,000

Federal taxable income 1,200,000

Deduction for Tn tax taken

for federal 60,000

Industrial Machinery credit 500

Jobs credit 1,500

Quarterly estimated payments 25,000 each

Prior year overpayment - no refund

claimed - apply to 2018 10,000

Calculate franchise and excise taxes and amount of payment or refund due (show calculations)

Tennessee Rates:

Franchise tax $.25 per $100 of greater net worth or book value of property plant equipment.

Including factor for rentals

(8 x annual real estate rental payment).

Excise Tax

(6.5% of net earnings on business in TN)