Corporate Taxes Suppose that in addition to the $300,000 of taxable income from operations,Liam's Burgers,Inc.received $25,000 of interest on state-issued bonds and $50,000 of dividends on common stock it owns in Sodas,Inc.
Using the tax schedule in Table 2.3 what is Liam's income tax liability?
What are Liam's average and marginal tax rates on total taxable income?
A)$106,100, 33.68%, 39%, respectively
B)$122,850, 39.00%, 39%, respectively
C)$129,500, 34.53%, 39%, respectively
D)$139,250, 37.13%, 39%, respectively

Question

Quizplus · Accepted Answer

The taxable income is $300,000. The interest on state-issued bonds is tax-exempt, and a portion of the dividends is excluded from taxable income. The tax liability is calculated using the tax schedule, resulting in $106,100. The average tax rate is the tax liability divided by taxable income, and the marginal tax rate is the rate on the last dollar of income.

Corporate Taxes Suppose That in Addition to the $300,000 of Taxable