Thornton, Inc

Accounting Sep 07, 2020

Thornton, Inc., had taxable income of $128,267 for the year. The company's marginal tax rate was 35 percent and its average tax rate was 24 percent. How much did the company have to pay in taxes for the year?

Multiple Choice

$29,197
$29,541
$27,839
$30,784
$44,893

Expert Solution

Computation of Taxes Payable for the Year:

Taxes Payable = Taxable Income * Average Tax Rate

= $128,267 * 24%

= $30,784.08 or $30,784

So, the correct option is 4th "$30,784".

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