Question
In the current year, Metro Market, Inc. (a C corporation) had $1,875,000 of sales and its cost of goods sold was $688,000. Metro also had
In the current year, Metro Market, Inc. (a C corporation) had $1,875,000 of sales and its cost of goods sold was $688,000. Metro also had $5,000 of corporate bond interest and $,6000 of interest on a State bond. Metro paid $512,000 of salaries and had other operating expenses of $542,000. In addition, Metro had a general business credit of $10,000. What is Metro Market's income tax liability for the current year?
| 2017 Corporate Tax Rate Schedule |
| |||
| If Taxable Income Is: Over | But Not Over | The Tax Is | Plus This % | of The Amount Over-- |
| $0 | $50,000 | $0 | 15% | $0.00 |
| $50,000 | $75,000 | $7,500 | 25% | $50,000 |
| $75,000 | $100,000 | $13,750 | 34% | $75,000 |
| $100,000 | $335,000 | $22,250 | 39% | $100,000 |
| $335,000 | $10,000,000 | $113,900 | 34% | $335,000 |
| $10,000,000 | $15,000,000 | $3,400,000 | 35% | $10,000,000 |
| $15,000,000 | $18,333,333 | $5,150,000 | 38% | $15,000,000 |
| $18,333,333 | ---- | $6,416,667 | 35% | $18,333,333 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Buck's The Next Step Advanced Medical Coding And Auditing
Authors: Elsevier
1st Edition
0323762778, 978-0323762779
