Lancaster Inc. expects to have taxable income of $275,000 for 20X1 and a tax credit of $12,250. Assume that the graduated tax rate schedule is as follows:
$$\begin{array} { l l }
\$ 1 - \$ 100,000 & 15 \% \
\$ 100,000 - 200,000 & 22 \% \
\$ 200,000460,000 & 28 \% + 5 \% \text { surtax } \
\$ 460,000 \text { and above } & 30 \%
\end{array}$$ Required:
Determine the tax expense for the first quarter, assuming that taxable income is $65,000.

Question

Lancaster Inc. expects to have taxable income of $275,000 for 20X1 and a tax credit of $12,250. Assume that the graduated tax rate schedule is as follows:
 $$\begin{array} { l l } 
\$ 1 - \$ 100,000 & 15 \% \
\$ 100,000 - 200,000 & 22 \% \
\$ 200,000460,000 & 28 \% + 5 \% \text { surtax } \
\$ 460,000 \text { and above } & 30 \%
\end{array}$$ Required:
Determine the tax expense for the first quarter, assuming that taxable income is $65,000.

Quizplus · Accepted Answer

The Answer of Lancaster Inc. expects to have taxable income of $275,000 for 20X1 and a tax credit of $12,250. Assume that the graduated tax rate schedule is as follows:
 $$\begin{array} { l l } 
\$ 1 - \$ 100,000 & 15 \% \
\$ 100,000 - 200,000 & 22 \% \
\$ 200,000460,000 & 28 \% + 5 \% \text { surtax } \
\$ 460,000 \text { and above } & 30 \%
\end{array}$$ Required:
Determine the tax expense for the first quarter, assuming that taxable income is $65,000.

Lancaster Inc Required: Determine the Tax Expense for the First Quarter, Assuming

Lancaster Inc Required:
Determine the Tax Expense for the First Quarter, Assuming