Question
Sales for J. P. Hulett Inc. during the past year amounted to $4.3 million. Gross profits totaled $1.02 million, and operating and depreciation expenses were
Sales for J. P. Hulett Inc. during the past year amounted to $4.3 million. Gross profits totaled $1.02 million, and operating and depreciation expenses were $507,000 and $346,000 , respectively. Dividend income for the year was $12,000 , which was paid by a firm in which Hulett owns 85 percent of the shares. Use the corporate tax rates shown in the popup window, The firm's tax liability for the year is
Taxable Income | Marginal Tax Rate |
|
$0$50,000 | 15% | |
$50,001$75,000 | 25% | |
$75,001$100,000 | 34% | |
$100,001$335,000 | 39% | |
$335,001$10,000,000 | 34% | |
$10,000,001$15,000,000 | 35% | |
$15,000,001$18,333,333 | 38% | |
Over $18,333,333 | 35% |
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