The Dakota Corporation had a 2015 taxable income of $28,500,000 from operations after all operating costs but before (1) interest charges of $8,100,000; (2) dividends received of $710,000; (3) dividends paid of $5,050,000; and (4) income taxes.
a. Use the tax schedule in Table 2.3 to calculate Dakotaâs income tax liability. (Round your answer to the nearest dollar amount.)
Income tax liability $
b. What are Dakotaâs average and marginal tax rates on taxable income? (Round your answers to the nearest whole percent.)
Average tax rate % Marginal tax rate %
| The Dakota Corporation had a 2015 taxable income of $28,500,000 from operations after all operating costs but before (1) interest charges of $8,100,000; (2) dividends received of $710,000; (3) dividends paid of $5,050,000; and (4) income taxes. |
| a. | Use the tax schedule in Table 2.3 to calculate Dakotaâs income tax liability. (Round your answer to the nearest dollar amount.) |
| Income tax liability | $ |
| b. | What are Dakotaâs average and marginal tax rates on taxable income? (Round your answers to the nearest whole percent.) |
| Average tax rate | % |
| Marginal tax rate | % |
Related questions
Corporate Tax Liability
To complete the assignments listed below, refer to the Table 2-1.
The Talley Corporation had a taxable income of $320,000 from operations after all operating costs but before (1) interest charges of $32,000, (2) dividends received of $19,200, (3) dividends paid of $19,200, and (4) income taxes.
What are the firm's income tax liability and its after-tax income? Round your answers to two decimal places.
| Income tax liability | $ |
| After-tax income | $ |
What are the company's marginal and average tax rates on taxable income? Round your answers to two decimal places.
| Marginal tax rate | % |
| Average tax rate | % |
