Maxwell, Inc. had taxable income of $2,500,000 for its fiscal year ended June 30, 2018. Compute Maxwell's regular tax liability.

Name: Maxwell, Inc. had taxable income of $2,500,000 for its fiscal year ended June 30, 2018. Compute Maxwell's regular tax liability.
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

For the fiscal year ended June 30, 2018, the corporate tax rate in the United States was a flat 21% due to the Tax Cuts and Jobs Act of 2017. Therefore, Maxwell, Inc.'s regular tax liability would be 21% of $2,500,000, which equals $525,000.