CORPORATE TAXES
September 30th, 2022
Corporate taxes Tantor Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods.
CORPORATE TAX RATE SCHEDULE
$0 – $30,000 15%
$30,000 – $50,000 25%
$50,000 – $75,000 34%
$75,000 – $100,000 39%
Over $100,000 34%
Tantor Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods. During 2010 the firm earned $92,500 before taxes.
a. Calculate the firm’s tax liability using the corporate tax rate schedule given in
b. How much are Tantor Supply’s 2010 after-tax earnings?
c. What was the firm’s average tax rate, based on your findings in part a?
d. What is the firm’s marginal tax rate, based on your findings in part a?