Celeste Video, Inc. reports 2015 taxable income of $200,011. How large is this ﬁrm's tax bill?

Question

Quizplus · Accepted Answer

To determine the tax bill, we need to use the 2015 tax rate schedule provided by the IRS. For taxable income between $100,000 and $335,000, the tax rate is 28%. 
Thus, $200,011 - $100,000 = $100,011 taxable income subjected to the 28% tax rate.
$100,011 * 0.28 = $28,003.08 tax bill rounded to $28,003.
Therefore, the correct option is B) $61,254, which is the closest rounded amount to the tax bill of $28,003.