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

(Computing income taxes) The William B. Waugh Corporation is a regional Toyota dealer. The firm sells new and used trucks and is actively involved in the parts business. During the most recent year, the company generated sales of $3.13 million. The combined cost of goods sold and the operating expenses were $2.09 million. Also, $411, 000 in interest expense was paid during the year. Calculate the corporation's tax liability by using the corporate tax rate structure.

The corporation's tax liability is $ (Round to the nearest dollar.) ANSWER:

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

(Computing income taxes) The William B. Waugh Corporation is a regional Toyota dealer. The firm sells new and used trucks and is actively involved in the parts business. During the most recent year, the company generated sales of $3.17 million. The combined cost of goods sold and the operating expenses were $2.14 million. Also, $405,000 in interest expense was paid during the year. Calculate the corporation's tax liability by using the corporate tax rate structure.

The corporation's tax liability is $ (Round to the nearest dollar.) ANSWER:

PLEASE ANSWER EACH QUESTION CORRECTLY AND FULLY!!!