Moto Inc, pays state income tax at a 5 percentate and federal income taxta 2 percent Moto recently engaged in a transaction in County N which levied a $97.300 tax on the transaction. This year. Moto generated $2.738 milion net income before consideration of any tax Required: a. Compute Moto's total tax burden federal, state and foreign assuming that the the paid to Country la deductible for both state and federal tax purposes . Compute Moto's total tax burden federal, tite, and foreign assuming that the the paid to County c. Compute Moto's total tax burden federal state, and foreign assuming that the the paid to Country s not deductible for the state or federal tax purposes Computer at they ale and federales more 2.738.000 NI O Dobre WO BUNO Bed And Santa Maria, whether to Courtyard umowa De Selamat me 32 10 12.738.000 SOS 1 Duden for en Free SO YO 5 For 1 11 Computer to tax burden Cederal, as, trengte x peu de etter offer exerposes. It www Shtetas.com Prime 3270 1270 See 12 Date torte 14 2.9.17 Federalnom 37.00 116410 Moto Inc. pays state income tax at a 6 percent rate and federal income tax at a 21 percent rate. Moto recently engaged in a transaction in Country N, which levied a $97,300 tax on the transaction. This year, Moto generated $2.738 million net income before consideration of any tax. Required: a. Compute Moto's total tax burden (federal, state, and foreign) assuming that the tax paid to Country N is deductible for both state and federal tax purposes. b. Compute Moto's total tax burden (federal, state, and foreign) assuming that the tax paid to Country N is not deductible for state tax purposes but is deductible for federal tax purposes. C. Compute Moto's total tax burden (federal, state, and foreign) assuming that the tax paid to Country N is not deductible for either state or federal tax purposes. Required A Required B Required Compute Moto's total tax burden (federal, state, and foreign) assuming that the tax paid to Country N is deductible for both state and federal tax purposes. (Deductions should be indicated by a minus sign. Round your intermediate calculations and final answers to the nearest whole dollar amount. Enter your answers in dollars not in millions.) $ State tax computation: Pretax income Deduction for foreign tax State taxable income State income tax rate (%) State tax $ 2,738,000 97,300 2,640,700 6 158,442 % $ $ Federal tax computation: Pretax income Deduction for foreign tox Deduction for state tax Federal taxable incomo Federal income tax rate (%) Federal tax 2.738,000 97,300 158,4423 2.482,258 34 % 843,968 $ $ Moto's total tax burden $ 1,002,410 Required A Required B Required Compute Moto's total tax burden (federal, state, and foreign) assuming that the tax paid to Country N is not deductible for state tax purposes but is deductible for federal tax purposes. (Deductions should be indicated by a minus sign. Round your Intermediate calculations and final answers to the nearest whole dollar amount. Enter your answers in dollars not in millions.) $ State tax computation: Pretax income Deduction for foreign tax State taxable income State income tax rate (%) State tax $ 2,738,000 0 2,738,000 6% 164,280 $ $ Federal tax computation Pretax income Deduction for foreign tax Deduction for state tax Federal taxable income Federal income tax rate (%) Federal tax 2,738,000 97,3003 164,280 2,476,420 34% 841,983 $ $ Moto's total tax burden $ 1,103,563 Requirea A Kequired Required Compute Moto's total tax burden (federal, state, and foreign) assuming that the tax paid to Country N is not deductible for either state or federal tax purposes. (Deductions should be indicated by a minus sign. Round your intermediate calculations and final answers to the nearest whole dollar amount. Enter your answers in dollars not in millions.) $ 2,738,000 0 State tax computation Pretax income Deduction for foreign tax State taxable income State income tax rate (%) State tax $ 2,738,000 % $ 2.738.000 0 Federal tax computation: Pretax income Deduction for foreign tax Deduction for state tax Federal taxable income Federal income tax rate(%) Federal tax 164.2803 $ 2,573,720 34 3% $ 875,065 Moto's total tax burden $ 1,136,645
