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Yoda's Training Camp Inc., realized $122,500 in operating income. Yoda's Training Camp Inc., had interest income of $25,000 and realized $70,000 in dividend income. Yoda's
Yoda's Training Camp Inc., realized $122,500 in operating income. Yoda's Training Camp Inc., had interest income of $25,000 and realized $70,000 in dividend income. Yoda's Training Camp Inc., had interest expense of $40,000. Using the corporate tax schedule below, what is Yoda's tax liability?
Taxable Income | Tax on Base of Bracket | Percentage on Excess above Base |
Up to $50,000 | $0 | 15% |
$50,000-$75,000 | 7,500 | 25 |
$75,000-$100,000 | 13,750 | 34 |
$100,000-$335,000 | 22,250 | 39 |
$335,000-$10,000,000 | 113,900 | 34 |
$10,000,000-$15,000,000 | 3,400,000 | 35 |
$15,000,000-$18,333,333 | 5,150,000 | 38 |
Over $18,333,333 | 6,416,667 | 35 |
Assume a 70% dividend exclusion for tax on dividends.
Group of answer choices
$37,702
$27,359
$33,365
$32,364
$36,702
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