Explore BrainMass

Explore BrainMass

    Income Tax Brackets

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Please help me to understand how to complete the following:

    Assuming that I am in the highest tax bracket of 39 percent. I know that this basically means that a taxpayer will pay 39 percent of his/her income to the government. An amount will be paid based on the portion of his/her income in each tax bracket up to total income. Holding out all other factors that are included in calculation of taxes, can some one help me to calculate the four different amounts and sum them, in an effort to determine the income tax bill of a corporation whose earnings before taxes (EBT) is $280,000 if the tax rate schedule is as follows:

    INCOME ($)/TAX RATE
    0 TO 50,000/15%
    50,001 TO 75,000/25%
    75,001 TO 100,000/34%
    100,001 TO 335,000/39%

    TAX BILL $_________________

    © BrainMass Inc. brainmass.com June 3, 2020, 8:58 pm ad1c9bdddf
    https://brainmass.com/business/accounting/income-tax-brackets-160370

    Solution Preview

    If the Corporate It Pays This Plus this percentage
    Taxable income is Amount on the on the Excess
    Base of the Bracket over the Base

    0 ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer the taxable amount.

    $2.19

    ADVERTISEMENT