Asked by Jaydan MacMaster on May 22, 2024
Verified
XYZ Inc. has taxable income of $14,000,000 in 20xx.
a. What is their tax liability using the corporate income tax schedule?
b. How would it change if they had losses of $4,000,000 two years ago and no income last year?
Corporate Income Tax Schedule
A chart or plan detailing the rates at which corporate income is taxed by the government at different income levels.
Tax Liability
The total amount of tax owed to governmental authorities, based on income, property value, transactions, or other taxable events.
- Familiarize yourself with the architecture and implications pertaining to tax rates for individuals and corporations.
Verified Answer
EC
Erica CajamarcaMay 26, 2024
Final Answer :
a. First $10M is taxed at 34% the remainder at 35%:
$10,000,000 (.34) + $4,000,000 (.35) = $4,800,000
b. $10,000,000 (.34) = $3,400,000
$10,000,000 (.34) + $4,000,000 (.35) = $4,800,000
b. $10,000,000 (.34) = $3,400,000
Learning Objectives
- Familiarize yourself with the architecture and implications pertaining to tax rates for individuals and corporations.