2013 U.S. Corporate tax rates are shown below:
Taxable Income | Marginal Tax Rate |
$0-$50,000 | 15% |
$50,001-$75,000 | 25% |
$75,001-$100,000 | 34% |
$100,001-$335,000 | 39% |
$335,001-$10,000,000 | 34% |
$10,000,001-$15,000,000 | 35% |
$15,000,001-$18,333,333 | 38% |
Over $18,333,333 | 35% |
RJH Inc. has earnings before taxes of $100,000 in 2013. The company's tax expense will be
A) $22,250
B) $24,670
C) $25,000
D) $34,000
2013 U.S. Corporate tax rates are shown below:
Taxable Income | Marginal Tax Rate |
$0-$50,000 | 15% |
$50,001-$75,000 | 25% |
$75,001-$100,000 | 34% |
$100,001-$335,000 | 39% |
$335,001-$10,000,000 | 34% |
$10,000,001-$15,000,000 | 35% |
$15,000,001-$18,333,333 | 38% |
Over $18,333,333 | 35% |
Bouffard Co. has earnings before taxes of $100,000,000 in 2013. The company's tax expense will be
A) $3,500,000
B) $36,500,000
C) $31,875,000
D) $35,000,000
A & K Co. expects to have earnings before taxes of $250,000 to $300,000. The company's marginal tax rate is 39% and its average tax rate about 33%. For every additional dollar of interest expense, A & K's taxes will
A) increase by 39 cents.
B) fall by 39 cents.
C) be unaffected.
D) fall by about 33 cents.
