The tax liability of a corporation with ordinary income of $1,100,000 is ________. Range of taxable income Marginal rate
$ 0 to $ 50,000 15%
50,000 to 75,000 25
75,000 to 100,000 34
100,000 to 335,000 39
335,000 to 10,000,000 34
10,000,000 to 15,000,000 35

Question

Quizplus · Accepted Answer

The tax liability is calculated by applying the marginal tax rates to the respective income brackets:  - $0 to $50,000 at 15% = $7,500  - $50,000 to $75,000 at 25% = $6,250  - $75,000 to $100,000 at 34% = $8,500  - $100,000 to $335,000 at 39% = $91,650  - $335,000 to $1,100,000 at 34% = $260,100  Total tax liability = $7,500 + $6,250 + $8,500 + $91,650 + $260,100 = $374,000.

The Tax Liability of a Corporation with Ordinary Income of $1,100,000