Managerial Finance

FINA 2100

ASIGNACIÓN- LECCIÓN 2

Resuelve los problemas que se presentan a continuación:

Corporate taxes. Tantor Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods. During 2009 the firm earned $92,500 before taxes.

a. Calculate the firm’s tax liability using the corporate tax rate schedule given in Table 2.1.

Total taxes due= $13,750 + 0.34 x $92,500- $75,000

= $13,750 + 0.34x $17,500

= $13,750 + $5,950

= $19,700

b. How much is Tanto Supply’s 2009 after-tax earnings?

After- tax earnings: $92,500 - $19,700= $72,800

c. What was the firm’s average tax rate, based on your findings in a?

Average tax rate: $19,700 ÷ $92,500= 21.3%

d. What is the firm’s marginal tax rate, based on your findings in a?

Marginal tax rate= 34%

Average corporate tax rates. Using the corporate tax rate schedule given in Table 2.1, perform the following:

a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of corporate earnings before taxes: $10,000; $80,000; $300,000; $10 millions and $20 million.

$10,000 Tax liability: $10,000 x 0.15 = $1,500

After- tax earnings: $10,000 - $1,500 = $8,500

Average tax rate: $ 1,500 ÷$10,000= 15%

$80,000 Tax liability: $13,370 + 0.34 x 80,000 - $75,000

$13,750 + 0.34 x $5,000

$ 13,750 + $1,700

Total tax= $15,450

After tax earnings: $80,000 - $15,450= $64,550

Average tax rate: $15,450÷$80,000= 19.3%...