Reference no: EM133160916

Questions -

Q1. A corporation's taxable income is taxed at the federal, state, and local levels. It is customary for an agency to deduct the taxes paid to the other agencies before computing the company's tax liability. For example, the federal taxes are based on the income that remains after the state and local taxes are deducted. Similarly, the state taxes are based on the income that remains after federal and local taxes are deducted; the local taxes are based on the income that remains after state and federal taxes are deducted.

Q2. A corporation has a taxable income of $7,408,506. At this income level, the federal income rate is 52%, the state tax rate is 23%, and the local tax rate is 15%. If each tax rate is applied to the the total taxable income, the resulting tax liability for the corporation would be (52 + 23 + 15)%. Luckily for the corporation, the taxes paid are deducted as described above. What is the tax liability (as a percentage of taxable income) if the customary deductions are taken into consideration?

Q3. A corporation has a taxable income of $2,282,175. At this income level, the federal income rate is 47%, the state tax rate is 20%, and the local tax rate is 11%. If each tax rate is applied to the total taxable income, the company would have to pay $2,282,175 * 0.47 in federal taxes. Luckily for the corporation, the taxes paid are deducted as described above. How much is paid in federal taxes if the customary deductions are taken into consideration?

Q4. A corporation has a taxable income of $2,948,000. At this income level, the federal income rate is 47%, the state tax rate is 22%, and the local tax rate is 14%. If each tax rate is applied to the the total taxable income, the company would have to pay $2,948,000 * 0.14 in local taxes. Luckily for the corporation, the taxes paid are deducted as described above. How much is paid in local taxes if the customary deductions are taken into consideration?

Q5. Many package delivery services charge a base price for packages up to some weight and a surcharge for each additional pound (or fraction thereof).

Use the Delivery Charges information above to answer this question.

Jesaki Express, a national package delivery service, charges a base price for overnight delivery of packages weighing 1 pounds or less and a surcharge for each additional pound (or fraction thereof). You are billed $27.62 for shipping a 5.6 pound package and $65.66 for shipping a 18.2 pound package. What is the base price that Jesaki Express charges for packages weighing 1 or less?

Q6. Yaster Shipping, a competing package delivery service, charges a base price for overnight delivery of packages weighing 1 pounds or less and a surcharge for each additional pound (or fraction thereof). You are billed $33.75 for shipping a 4.1 pound package and $64.56 for shipping a 23.2 pound package. What is the surcharge that Yaster Shipping charges for each additional pound (or fraction thereof) beyond 1 pounds?

Q7. Yaster Shipping, a competing package delivery service, charges a base price for overnight delivery of packages weighing 2 pounds or less and a surcharge for each additional pound (or fraction thereof). You are billed $31.56 for shipping a 5.2 pound package and $65.64 for shipping a 18.7 pound package. How much does it cost to ship a 21.2 pound package?