Question
(Corporate income tax) Sales for J. P. Hulett Inc. during the past year amounted to $4.3 million. Gross profits totaled $1.04 million and operating and
(Corporate income tax) Sales for J. P. Hulett Inc. during the past year amounted to $4.3 million. Gross profits totaled $1.04 million and operating and depreciation expenses were $494,000 and $343,000 , respectively. Dividend income for the year was $14,000, which was paid by a firm in which Hulett owns 85 percent of the shares. Use the corporate tax rates shown in the popup window,to Comcute the corporation's tax liability. What are the firm's average and marginal tax rates?
The firm's tax liability for the year is $____ . (Round to the nearest dollar.)
Data Table Marginal Tax Rate 15% Taxable Income $0 $50,000 $50,001-$75,000 | 25% $75,001 $100,000 $100,001 - $335,000 $335,001-$10,000,000 | 34% $10,000,001-$15,000,000 | 35% $15,000,001-$18,333,333 | 38% Over $18,333,333 34% 39% 35% PrintDoneStep by Step Solution
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