A corporation has taxable income of $400,000.What is its tax liability?

Question

Quizplus · Accepted Answer

The tax liability for a corporation with taxable income of $400,000 is calculated using the corporate income tax rates. For income between $100,000 and $335,000, the tax rate is 39%. For income over $335,000, the tax rate is 34%. 
Therefore, the tax liability can be calculated as follows: 
($335,000 - $100,000) x 0.39 + ($400,000 - $335,000) x 0.34 = $136,000. 
Therefore, choice C is the correct answer.

A Corporation Has Taxable Income of $400,000