Homework answers / question archive / Assume that a corporation has $200,000 of taxable income from operations

Assume that a corporation has $200,000 of taxable income from operations

Business

Share With

1. Assume that a corporation has $200,000 of taxable income from operations. What is the company's federal tax liability?
2. Assume that you are in the 25% marginal tax bracket and that you have $50,000 to invest. You have narrowed your investment choices down to municipal bonds yielding 7% or equally risky corporate bonds with a yield of 10%. Which one should you choose and why? At what marginal tax rate would you be indifferent?

Tags: Business Calculations