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

Question

Quizplus · Accepted Answer

The tax liability of a corporation depends on its taxable income and the applicable corporate tax rate. For taxable income of $400,000, the applicable tax rate would be 34%. Therefore, the tax liability would be:

Tax Liability = Taxable Income × Tax Rate
Tax Liability = $400,000 × 0.34
Tax Liability = $136,000

Therefore, the correct answer is C, $136,000.

A Corporation Has Taxable Income of $400,000