Tantor Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods. During 2013 the firm earned $90,800 before taxes.
a. Calculate the firm's tax liability using the corporate tax rate schedule given in the following Table . Round to the nearest dollar.
| Corporate Tax Rate Schedule |
|
|
|
|
|
|
|
|
Tax calculation |
|
|
|
|
| Range of taxable income |
|
Base tax |
+ |
(Marginal×rate amount over base bracket) |
|
|
| $0 to |
$50000 |
$0 |
+ |
(15% |
×amount over |
$0) |
| 50,000 to |
75000 |
7500 |
+ |
(25 |
×amount over |
50,000) |
| 75,000 to |
100000 |
13750 |
+ |
(34 |
×amount over |
75,000) |
| 100,000 to |
335000 |
22250 |
+ |
(39 |
×amount over |
100,000) |
| 335,000 to |
10000000 |
113900 |
+ |
(34 |
×amount over |
335,000) |
| 10,000,000 to |
15000000 |
3400000 |
+ |
(35 |
×amount over |
10,000,000) |
| 15,000,000 to |
18333333 |
5150000 |
+ |
(38 |
×amount over |
15,000,000) |
| Over 18,333,333 |
|
6416667 |
+ |
(35 |
×amount over |
18,333,333) |
|