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Please show your steps for me to follow with different numbers, thank you in advanced. Warm-up 1-6 Ross Company, a manufacturer of pharmaceuticals, has pretax
Please show your steps for me to follow with different numbers, thank you in advanced.
Warm-up 1-6
Ross Company, a manufacturer of pharmaceuticals, has pretax ordinary income of $498,000 and has just sold an asset purchased two years ago with a realized capital gain of $16,000.
Using this table:
Corporate Tax Rate Schedule Tax calculation Base tax + $0 + + + Range of taxable income $0 to $50,000 50,000 to 75,000 75,000 to 100,000 100,000 to 335,000 335,000 to 10,000,000 10,000,000 to 15,000,000 15,000,000 to 18,333,333 Over 18,333,333 + 7,500 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 (15% (25% (34% (39% (34% (35% (38% (35% (Marginal rate x amount over base bracket) X amount over $0) x amount over 50,000) x amount over 75,000) x amount over 100,000) X amount over 335,000) x amount over 10,000,000) X amount over 15,000,000) x amount over 18,333,333) + + + +Step by Step Solution
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