Question 8:

Robbins Corporation is a retail dealer for electronic equipment. The taxable income is $601,500.

Calculate the tax liability.

The corporate tax rates are as follows:

Income from 0 to $50,000 = 15%

$50,000 to $75,000 =25%

$75,000 to $1,000,000 =33%

Over $1,000,000 = 40%

Additional Surcharge:

5% on income between $100,000 to $350,000

2% on income over $350,000