Using the corporate tax rates provided in the text, what is the corporate income tax paid on earnings of (a) $1,000, (b) $10,000, (c) $100,000, (d) 1,000,000, and (e) 10,000,000?

What will be an ideal response?


a. for $1,000: ($1,000)0.15 = $150?b. for $10,000: ($10,000)0.15 = $1,500?c. for $100,000: ($50,000).15 + (25,000).25 +25,000(.34) = $22,250?d. for $1,000,000:($50,000).15 + (25,000).25 + 25,000(.34) +(235,000).39 + (665,000).34 = $340,000?e. for $10,000,000:($50,000).15 + (25,000).25 + 25,000(.34) +(335,000).39 + (665,000).34 + (9,000,000)x.34 = $3,400,000??

Business

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