Question

In 2015, forest corp., a u.s. mne, had before-tax earnings of $315,000. how much did they pay for corporate taxes in 2015?

options:
A. $122,850
B. $119,000
C. $106,100
D. $107,100

Answer 1

The correct option is D. In 2015, Forest Corp. had before-tax earnings of $315,000. Using the tax rate structure, the corporate taxes paid would be $107,100.

Step-by-step explanation:

In 2015, Forest Corp., a U.S. MNE, had before-tax earnings of $315,000.

To calculate the corporate taxes paid, we need to use the given tax rate structure.

According to the information provided, the tax rate for incomes between $335,000 and $10,000,000 is a flat 34%.

Therefore, the amount of corporate taxes paid by Forest Corp. in 2015 would be:

$315,000 x 0.34 = $107,100