Q:

Subject: Corporate Tax Rate Schedule

Hey Kerry,

I'm a student at Binghamton University and I'm trying to understand you're tax rate schedule after looking at the 1120-W form.  What I'm having trouble with is how the rate resets at 335,000 and 18,333,334. 

The first makes sense, but I do not understand either the $550,000 at the second to last bracket, or the reset rate for all income over $18,333,334.

Thanks for any help,

Oh, and I'm doing this for a simulated 2% reduction in the corporate tax rate, just to let you know what I'm trying to do.

A:

This is a good time to repeat my long standing policy on not answering homework questions.  This has always been my online policy, going back several years ago when I was answering questions on the old AskMe.com website. 

I barely have time to address real life questions from many people; much less provide short-cuts for students who should be doing their own research and utilizing the resources they are paying for with their tuition. 

The answers to your questions are very easy if you work through the figures in the tax rate schedules.  If you can't figure it out on your own, you should ask your professor or his/her teaching assistant to explain it to you.  That's what they are there for.

Good luck.

Kerry Kerstetter

 

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 3/19/2006 01:00:00 PM Send this post: