Question
The French Chemical corporation was formed to produce household bleach. Assume the company has the following financial results in year 2010. Gross income $1,820,000 Supplies
The French Chemical corporation was formed to produce household bleach. Assume the company has the following financial results in year 2010.
Gross income $1,820,000
Supplies and operating expenses $420,000
Depreciation and other allowed deductions $250,000
How much will the corporation pay in federal income taxes for the year?
US Corporate Federal Tax Rates 2010
| If Taxable Income (TI) is: | |||
| Over, $ | But not over, $ | Tax is, $ and % | Of the amount over, $ |
| 0 | 50,000 | 15% | 0 |
| 50,000 | 75,000 | 7,500 + 25% | 50,000 |
| 75,000 | 100,000 | 13,750 + 34% | 75,000 |
| 100,000 | 335,000 | 22,250 + 39% | 100,000 |
| 335,000 | 10,000,000 | 113,900 + 34% | 335,000 |
| 10,000,000 | 15,000,000 | 3,400,000 + 35% | 10,000,000 |
| 15,000,000 | 18,333,333 | 5,150,000 + 38% | 15,000,000 |
| 18,333,333 | No limit | 35% | 0 |
| A. | $402,500 | |
| B. | $537,000 | |
| C. | $470,840 | |
| D. | $391,000 |
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Financial Institutions Management
Authors: Anthony Saunders, Marcia Cornett
8th Edition
0078034809, 978-0078034800
