Question

The tax liability of a corporation with ordinary income of $105,000 is ________. Range of taxable income - Marginal rate $0 to $50,000 - 15% 50,000 to 75,000 - 25 75,000 to 100,000 - 34 100,000 to 335,000 - 39 335,000 to 10,000,000 - 34 10,000,000 to 15,000,000 - 35 15,000,000 to 18,333,333 - 38 Over 18,333,333 - 35 A) $42,000 B) $35,700 C) $23,950 D) $24,450

Answer 1

Answer:

$24,199.02

Explanation:

corporation's ordinary income = $105,000

tax brackets              taxable income       tax rate          taxed due

$0 - $50,000                 $50,000                 15%           $7,500.00

$50,001 - $75,000        $24,999                 25%           $6,249.75‬

$75,001 - $100,000       $24,999                 34%           $8,499.66

$100,001 - $105,000        $4,999                 39%           $1,949.61

total taxes due                                                                $24,199.02