G H Taxable Income Over But Not Over Difference Rate Taxes Cumulative Taxes 50,000 50,000 15% 7,500 7,500 50,000 75,000 25,000 25% 6,250 13,750 75,000 100,000 25,000 34% 8,500 22,250 100,000 335,000 235,000 39% 91,650 113,900 335,000 10,000,000 9,665,000 34% 3,286,100 3,400,000 10,000,000 15,000,000 5,000,000 35% 1,750,000 5,150,000 15,000,000 18,333,333 3,333,333 38% 1,266,667 6,416,667 18,333,333 35% PERSONAL Married Filing Jointly Marginal Tax Incremental Taxable Income Over But Not Over Difference Rate Taxes Cumulative Taxes 18,450 18,450 10% 1,845.00 1,845.00 18,450 74,900 56,450 15% 8,467,50 10,312.50 74,900 151,200 76,300 25% 19,075.00 29,387.50 151,200 230,450 79,250 28% 22,190.00 51,577,50 230,450 411,500 181,050 33% 59,746.50 111,324.00 411,500 464,850 53,350 35% 18,672,50 129,996.50 464,850 39.6% Using the tax tables above, provide the following information/calculations 1. A Corporation has a taxable income of $200,000 a. How much are the Corporate Income Taxes? b. What is the Effective Tax Rate? c. What is the Marginal Rate? 2. Assume the company is a Sole Proprietorship (ie business is filed on the personal tax return), and also has taxable income of $200,000. a. How much are the Personal Income Taxes? b. What is the Effective Tax Rate? c. What is the Marginal Rate? 3. Which legal entity pays the least taxes. 4. Change the taxable income in #1 and #2 above to $1,000,000 a. How much are the Corporate Income Taxes b. How much are the Personal Income taxes (if sole proprietor) c. Which legal entity pays the least taxes