The Dyrdek Co. had $312,000 in 2014 taxable income. Use the tax rates from Table 2.3. Calculate the company’s 2014 income taxes.

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The Dyrdek Co. had $312,000 in 2014 taxable income. Use the tax rates from Table 2.3. Calculate the company’s 2014 income taxes.

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Answer: Dyrdek Co’s income tax = $ 104,930

 

 working notes for the above answer is as under

we have been given that,

The Dyrdek Co. had $312,000 in 2014 taxable income.

 

Taxes = .15($50,000) + .25($25,000) + .34($25,000) + .39($312,000 – 100,000)

Taxes = $104,930

Dyrdek Co’s income tax = $ 104,930

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