Answer:
$11737.25
Step-by-step explanation:
We have been given a tax table and we are asked to find the amount o federal corporate income tax for a company having an annual gross income of $72,173 and deductions total $5,224.
First of all, we will subtract deductions from annual gross income to get total taxable income.
[tex]\text{Total taxable income}=\$72,173-\$5,224[/tex]
[tex]\text{Total taxable income}=\$66,949[/tex]
Upon looking at our given table, we can see that $66,949 lies in second row of taxable income as $66,949 is between $50,000-$75,000.
The amount of federal corporate income tax would be $7,500 plus 25% of amount over $50,000 that would be $16,949 ($66,949-$50,000).
[tex]\text{The federal corporate income tax}=\$7,500+(\frac{25}{100}\times \$16,949)[/tex]
[tex]\text{The federal corporate income tax}=\$7,500+(0.25\times \$16,949)[/tex]
[tex]\text{The federal corporate income tax}=\$7,500+\$4,237.25[/tex]
[tex]\text{The federal corporate income tax}=\$11737.25[/tex]
Therefore, the amount of the federal corporate income tax is $11737.25.
