Apple Company pays 15% on the first $50,000 of pretax income and 30% on any additional pretax income.Apple Company currently earns $52,000.An investment under consideration is expected to add $20,000 in pretax income.What is the tax rate on the additional income from the investment?

Question

Quizplus · Accepted Answer

The additional income from the investment will be taxed at the higher rate of 30% because it exceeds the initial $50,000 threshold.

Apple Company Pays 15% on the First $50,000 of Pretax