Final answer:
Corporation ABC with a taxable income of $10,000,000 for the year 2018 would owe a flat 34% tax rate, resulting in $3,400,000 in corporate income taxes.
Step-by-step explanation:
Corporation ABC had taxable income of $10,000,000 for its tax year ended December 31, 2018. According to the tax brackets provided, this income level falls into a flat 34% tax rate for incomes from $335,000 to $10,000,000. Therefore, Corporation ABC owes $3,400,000 in corporate income taxes for 2018, as 34% of $10,000,000 equals $3,400,000. It is important to note that this calculation assumes no other tax credits or deductions apply that could alter the amount of taxes owed.
An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Taxation rates may vary by type or characteristics of the taxpayer and the type of income.