Question
Marginal and average tax rates: Use the tax rate taken from Exhibit 11.6 to calculate the average tax rate for Lansing, Inc., this year. Lansing's
Marginal and average tax rates: Use the tax rate taken from Exhibit 11.6 to calculate the average tax rate for Lansing, Inc., this year. Lansing's pretax income was $275,000. Exhibit 11.6 U.S. Corporate Tax Rate Schedule in 2007
| Taxable Income | |||
| More | But Not More | ||
| Than | Than | Tax Owed | |
| $0 | $50,000 | 15% of amount beyond $0 | |
| $50,000 | $75,000 | $7,500 + | 25% of amount beyond $50,000 |
| $75,000 | $100,000 | $13,750 + | 34% of amount beyond $75,000 |
| $100,000 | $335,000 | $22,250 + | 39% of amount beyond $100,000 |
| $335,000 | $10,000,000 | $113,900 + | 34% of amount beyond $335,000 |
| $10,000,000 | $15,000,000 | $3,400,000 + | 35% of amount beyond $10,000,000 |
| $15,000,000 | $18,333,333 | $5,150,000 + | 38% of amount beyond $15,000,000 |
| $18,333,333 | ------- | 35% on all income | |
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The Oxford Handbook Of Computational Economics And Finance
Authors: Shu-Heng Chen, Mak Kaboudan, Ye-Rong Du
1st Edition
0199844372, 978-0199844371
