Reference no: EM133183755

Question - Company K operates in a jurisdiction that levies an income tax with the following rate structure:

Percentage Rate	Bracket
7%	Income from -0- to $75,000
10	Income from $75,001 to $150,000
15	Income in excess of $150,000

Company K incurs a $20,000 deductible expense.

Required -

1. Compute the current year tax savings from the deduction assuming that Company K's taxable income before considering the additional deduction is $67,700.

2. Compute the current year tax savings from the deduction assuming that Company K's taxable income before considering the additional deduction is $168,400.

3. Compute the current year tax savings from the deduction assuming that Company K has a $4,250 loss before considering the additional deduction.