What is the effective tax rate that a company will end up paying if their year income is $16.7 million? The tax needs to be calculated based on the table shown below: FromBelowTax+ Marginal additional tax$0$50,00015% $50,000$75,000$7,500+ 25% over $50,000$75,000$100,000$13,750+ 34% over $75,000$100,000$335,000$22,250+ 39% over $100,000$335,000$10,000,000$113,900+ 34% over $335,000$10,000,000$15,000,000$3,400,000+ 35% over $10,000,000$15,000,000$18,333,333$5,150,000+ 38% over $15,000,000Group of answer choices27.4483%34.1007%34.0000%34.7066%

The tax has to be paid by companies if they are earning an income more than the exemption limit. In…

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What is the effective tax rate that a company will end up paying if their year income is $16.7 million? The tax needs to be calculated based on the table shown below:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8MC: A company has wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be...

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Question

What is the effective tax rate that a company will end up paying if their year income is $16.7 million? The tax needs to be calculated based on the table shown below:

From	Below	Tax	+ Marginal additional tax
$0	$50,000	15%
$50,000	$75,000	$7,500	+ 25% over $50,000
$75,000	$100,000	$13,750	+ 34% over $75,000
$100,000	$335,000	$22,250	+ 39% over $100,000
$335,000	$10,000,000	$113,900	+ 34% over $335,000
$10,000,000	$15,000,000	$3,400,000	+ 35% over $10,000,000
$15,000,000	$18,333,333	$5,150,000	+ 38% over $15,000,000

Group of answer choices

27.4483%

34.1007%

34.0000%

34.7066%

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