Question

The tax liability of a corporation with ordinary income of $105,000 is ________. Range of taxable income - Marginal rate $0 to $50,000 - 15% 50,000 to 75,000 - 25 75,000 to 100,000 - 34 100,000 to 335,000 - 39 335,000 to 10,000,000 - 34 10,000,000 to 15,000,000 - 35 15,000,000 to 18,333,333 - 38 Over 18,333,333 - 35 A) $42,000 B) $35,700 C) $23,950 D) $24,450

Answer 1

$24,199.02

Step-by-step explanation:

corporation's ordinary income = $105,000

tax brackets taxable income tax rate taxed due

$0 - $50,000 $50,000 15% $7,500.00

$50,001 - $75,000 $24,999 25% $6,249.75‬

$75,001 - $100,000 $24,999 34% $8,499.66

$100,001 - $105,000 $4,999 39% $1,949.61

total taxes due $24,199.02