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I got this Practice questions wrong. Can you show me how to do this? (Corporate income tax) Last year Sanderson, Inc. had sales of $3.7
I got this Practice questions wrong. Can you show me how to do this?
(Corporate income tax) Last year Sanderson, Inc. had sales of $3.7 million. The firm's cost of goods sold came to $2.5 million, its operating expenses excluding depreciation of $102,000 were $406,000, and the firm paid $145,000 in interest on its bank loans. Also, the corporation received $50,000 in dividend income (from a company in which it owned less than 20 percent of its shares) but paid $21,000 in the form of dividends to its own common stockholders. Use the corporate tax rates shown in the popup window, E , to calculate the corporation's tax liability. What are the firm's average and marginal tax rates? The firm's tax liability for the year is $ 191,080. (Round to the nearest dollar.) The firm's average tax rate is 34.00%. (Round to two decimal places.) A Data Table The firm's marginal tax rate is 34 %. (Round to the nearest integer.) Marginal Tax Rate 15% Taxable Income $0 - $50,000 $50,001 - $75,000 $75,001 - $100,000 $100,001 - $335,000 $335,001 - $10,000,000 $10,000,001 - $15,000,000 $15,000,001 - $18,333,333 Over $18,333,333 25% 34% 39% 34% 35% 38% 35%Step by Step Solution
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