Using tax rate 21%, the tax liability for a corporation with $17.5 million of taxable income is $3,675,000
Because of the Tax Cuts and Jobs Act of 2017, the nominal federal corporate tax rate in the United States of America has been a flat 21% since January 1, 2018.
The federal government determines what is taxable and at what rate based on US tax law. Taxable income in the United States is equal to gross income less tax deductions. A corporation's gross income and business deductions are calculated in the same way that they are for individuals. A corporation's income is taxed at the same federal rate. Corporations, on the other hand, can deduct net capital losses from other federal taxable income.
Tax liability = taxable income x tax rate
= $17.5 million x 21%
= $3,675,000
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