Rockhill Corporation operates a women's clothing boutique. Taxable income for the current year is $60,000. What is Rockhill's income tax liability?

Question

Quizplus · Accepted Answer

Based on the 2021 tax tables for corporations, the tax liability for taxable income of $60,000 is $12,600. The calculation is as follows: 
- The first $50,000 is taxed at a rate of 21%, which equals $10,500. 
- The remaining $10,000 is taxed at a rate of 24%, which equals $2,400. 
- Adding these two amounts together gives a total tax liability of $12,600. Therefore, the correct answer is D.

Rockhill Corporation Operates a Women's Clothing Boutique