Question $4$

High$-$Tech Pumps has a gross income in $1$ year of $$17$ million. Operating expenses $($salaries

and wages, materials, etc.$)$ are $$8$ million. Depreciation is $$2\mathrm{.}8$ million. This year also there

is a depreciation recapture of $$500,000$ because a specialized CNC machine tool that is no

longer needed is sold for more than its book value.

Table $2$ : Corporate Graduated Tax Schedule

i$.$ What are the company's taxable income and compute the company's federal income

taxes based on Table $2$ given above

ii$.$ What is the average federal tax rate?

$(4$ marks, C$4)$Question $4$

High$-$Tech Pumps has a gross income in $1$ year of $$17$ million. Operating expenses $($salaries

and wages, materials, etc.$)$ are $ $8$ million. Depreciation is $$2\mathrm{.}8$ million. This year also there

is a depreciation recapture of $$500,000$ because a specialized CNC machine tool that is no

longer needed is sold for more than its book value.

What are the company$$s taxable income and compute the company$$s federal income

taxes based on Table $2$ given above

What is the average federal tax rate?