Last year, Martyn Company had $440,000 in taxable income from its operations, $50,000 in interest income, and $100,000 in dividend income. Using the corporate tax rate table given below, what was the company's tax liability for the year? Taxable IncomeTax on Base of BracketPercentage on Excess above Base$0-$50,000$015%$50,000-$75,0007,50025 $75,000-$100,00013,75034 $100,000-$335,00022,25039 $335,000-$10,000,000113,90034 $10,000,000-$15,000,0003,400,00035 $15,000,000-$18,333,3335,150,00038 Over $18,333,3336,416,66735 ? Assume a 70% dividend exclusion for tax on dividends.
A. $176,800
B. $221,000
C. $215,696
D. $160,888
E. $212,160
Answer: A
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