Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Zapple Inc. is concerned about the taxes paid by the company in 2018. The firm received $4 million in earnings from operations, paid $100,000 in
Zapple Inc. is concerned about the taxes paid by the company in 2018. The firm received $4 million in earnings from operations, paid $100,000 in interest payments, received $150,000 of interest income, and finally $300,000 in dividend income. What is Zapple's tax liability, average tax rate, and marginal tax rate, respectively using the table given below?
Taxable Income | Tax on Base of Bracket | Percentage on Excess above Base |
$0-$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 |
$1,637,100, 32%, 34% | ||
$1,293,700, 34%, 34% | ||
$1,407,600, 34%, 34% | ||
$1,475,600, 34%, 34% | ||
None of the above |
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