Marginal corporate tax rates Using the corporate tax rate schedule given here i, perform the following:a. Find the marginal tax rate for the following levels of corporate earnings before taxes:...


Question 16, P1-8 (book/static)<br>Part 1 of 18<br>><br>Marginal corporate tax rates Using the corporate tax rate schedule given here i, perform the following:<br>a. Find the marginal tax rate for the following levels of corporate earnings before taxes: $12,000; $40,000; $70,000; $90,000; $300,000; $550,000; $1.3 million; and $22 million.<br>b. Plot the marginal tax rate (measured on the y-axis) against the pretax income levels (measured on the x-axis). Explain the relationship between the marginal tax rate and pretax income levels.<br>a. The marginal tax rate for corporate earnings before taxes of $12,000 is<br>%. (Round to the nearest integer.)<br>More info<br>Corporate Tax Rate Schedule<br>Tax calculation<br>Taxable income brackets<br>Base tax<br>(Marginal rate x amount over bracket lower limit)<br>$0)<br>50,000)<br>75,000)<br>100,000)<br>335,000)<br>10,000,000)<br>15,000,000)<br>18,333,333)<br>$0 to<br>$50,000<br>$0<br>x amount over<br>(15%<br>(25%<br>(34%<br>+<br>50,000 to<br>75,000<br>7,500<br>x amount over<br>+<br>75,000 to<br>100,000<br>13,750<br>x amount over<br>(39%<br>(34%<br>(35%<br>(38%<br>(35%<br>100,000 to<br>335,000<br>22,250<br>x amount over<br>335,000 to<br>10,000,000<br>113,900<br>x amount over<br>10,000,000 to<br>15,000,000<br>3,400,000<br>x amount over<br>+<br>15,000,000 to<br>18,333,333<br>5,150,000<br>x amount over<br>Over 18,333,333<br>6,416,667<br>x amount over<br>Print<br>Done<br>

Extracted text: Question 16, P1-8 (book/static) Part 1 of 18 > Marginal corporate tax rates Using the corporate tax rate schedule given here i, perform the following: a. Find the marginal tax rate for the following levels of corporate earnings before taxes: $12,000; $40,000; $70,000; $90,000; $300,000; $550,000; $1.3 million; and $22 million. b. Plot the marginal tax rate (measured on the y-axis) against the pretax income levels (measured on the x-axis). Explain the relationship between the marginal tax rate and pretax income levels. a. The marginal tax rate for corporate earnings before taxes of $12,000 is %. (Round to the nearest integer.) More info Corporate Tax Rate Schedule Tax calculation Taxable income brackets Base tax (Marginal rate x amount over bracket lower limit) $0) 50,000) 75,000) 100,000) 335,000) 10,000,000) 15,000,000) 18,333,333) $0 to $50,000 $0 x amount over (15% (25% (34% + 50,000 to 75,000 7,500 x amount over + 75,000 to 100,000 13,750 x amount over (39% (34% (35% (38% (35% 100,000 to 335,000 22,250 x amount over 335,000 to 10,000,000 113,900 x amount over 10,000,000 to 15,000,000 3,400,000 x amount over + 15,000,000 to 18,333,333 5,150,000 x amount over Over 18,333,333 6,416,667 x amount over Print Done
Jun 11, 2022
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