Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The U.S. Corporate Tax Rate Schedule is shown below. EXHIBIT 11.6 U.S. Corporate Tax Rate Schedule in 2016 Just like the tax system for individuals,
The U.S. Corporate Tax Rate Schedule is shown below. EXHIBIT 11.6 U.S. Corporate Tax Rate Schedule in 2016 Just like the tax system for individuals, the tax system for corporations in the United States is progres- sive, with marginal tax rates ranging from 15 percent to as high as 39 percent. Taxable Income More But Not Than More Than Tax Owed $0 $50,000 15% of amount beyond $0 $50,000 $75,000 $7,500 + 25% of amount beyond $50,000 $75,000 $100,000 $13,750 + 34% of amount beyond $75,000 $100,000 $335,000 $22,250 + 39% of amount beyond $100,000 $335,000 $10,000,000 $113,900 + 34% of amount beyond $335,000 $10,000,000 $15,000,000 $3,400,000 + 35% of amount beyond $10,000,000 $15,000,000 $18,333,333 $5,150,000 + 38% of amount beyond $15,000,000 $18,333,333 35% on all income What was the average tax rate of a corporation that had a taxable income of $10.375 million in 2016? (Round answer to 1 decimal place, e.g. 17.5%.) Average tax rate 15 %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started