Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chartworth Associates financial statements indicated that the company has EBITDA of $3,145,903. It had depreciation of $633,000, and its interest rate on debt of $1.25

Chartworth Associates financial statements indicated that the company has EBITDA of $3,145,903. It had depreciation of $633,000, and its interest rate on debt of $1.25 million was 7.5%. The company is likely to owe $822,512 in taxes. What are the marginal and average tax rates for this company? Tax Rate Taxable Income 15% $0 to $50,000 25 50,001 75,000 34 75,001 100,000 39 100,001 335,000 34 335,001 10,000,000 35 10,000,001 15,000,000 38 15,000,001 18,333,333 35 More than $18,333,333

Question options:

34%, 34%

34%, 35%

none of these

35%, 34%

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

Selling Professional And Financial Services Handbook

Authors: Scott Paczosa, Chuck Peruchini

1st Edition

1118728149, 978-1118728147

More Books

Students also viewed these Finance questions