Corporate Taxes The Ohio Corporation had a 2013 taxable income of $50,000,000 from operations after all operating costs but before
(1)interest charges of $500,000,
(2)dividends received of $45,000,
(3)dividends paid of $10,000,000,and
(4)income taxes.
Using the tax schedule in Table 2.3,what is Ohio's income tax liability?
What are Ohio's average and marginal tax rates on taxable income from operations?

Question

Quizplus · Accepted Answer

The taxable income is $50,000,000. Using the tax schedule, the tax liability is calculated as $17,329,725. The average tax rate is the tax liability divided by taxable income, which is 34.66%. The marginal tax rate is 35% as it is the rate applied to the last dollar of income.

Corporate Taxes the Ohio Corporation Had a 2013 Taxable Income