WEEK TWO

1. Corporate Tax Rates

15%

$0$50,000

25%

$50,001$75,000

34%

$75,001$10,000,000

35%

over $10,000,000

Additional surtax:

5% on income between $100,000 and $335,000

3% on income between $15,000,000 and $18,333,333

(Corporate income tax) Boisjoly Productions had taxable income of $19.5 million.

a. Calculate Boisjoly's federal income taxes by using the corporate tax rate structure.

b. Now calculate Boisjoly's average and marginal tax rates.

c. What would Boisjoly's federal income taxes be if its taxable income was

$29.6 million?

d. Now calculate Boisjoly's average and marginal tax rates with taxable income of

$29.6 million.

a. Calculate Boisjoly's federal income taxes.

The total tax due is $ (Round to the nearest dollar.) ANSWER: (Round to the nearest dollar.)

2. Corporate Tax Rates

15%

$0$50,000

25%

$50,001$75,000

34%

$75,001$10,000,000

35%

over $10,000,000

Additional surtax:

5% on income between $100,000 and $335,000

3% on income between $15,000,000 and $18,333,333

(Corporate income tax) Sandersen Inc. sells minicomputers. During the past year the company's sales were $3.7 million. The cost of its merchandise sold came to $1.8 million, and cash operating expenses were $397,000; depreciation expense was $99,000, and the firm paid $151,000 in interest on its bank loans. Also, the corporation received $48,000 in dividend income but paid $28,000 in the form of dividends to its own common stockholders. Calculate the corporation's tax liability by using the corporate tax rate structure.

Calculate the gross profits. The gross profits are (Round to the nearest dollar.) ANSWER:

PLEASE ANSWER EACH QUESTION FULLY AND CORRECTLY!!!!