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I am working on the Systems understanding aid 9th edition, and I am stuck on calculating the federal income tax expense. The net income before
I am working on the Systems understanding aid 9th edition, and I am stuck on calculating the federal income tax expense. The net income before tax is 183,556.72 and i have attached the tax rates. The value is supposed to come out to 54,837.12, however when I do the calculations I get 94,087.12
end worksheet. Jim Adams calculates federal income tax expense from the income statement column on the year-end worksheet, enters it in the adjustments column of the worksheet, and extends the expense and liability amounts to their respective income statement and balance sheet columns. Corporate income tax rates are subject to change annually, but for 2017, the rates are reflected in the following table (most recent as of date of publication). 4. U.S. CORPORATE INCOME TAX TABLE Tax is: Pre-tax net income overBut not over- $50,000 75,000 100,000 335,000 10,000,000 Of the amount over- $0 50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 15% $ 7,500 + 25% 13,750 + 34% 22,250 + 39% 113,900 + 34% 3,400,000 + 35% 5,150,000 + 38% 35% $0 50,000 75,000 100,000 335,000 10,000,000 15,000,000 15,000,000| 18,333,333Step by Step Solution
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