Business j operates in a jurisdiction that levies an income...

Business J operates in a jurisdiction that levies an income tax with the following rate structure: Percentage RateBracket7%Income from −0− to $75,00010Income from $75,001 to $150,00015Income in excess of $150,000 Business J has the opportunity to invest in a project that should generate $31,000 additional taxable income for the year. Required: Compute the tax cost of the additional income assuming that business J’s taxable income before considering the additional income is $102,500. Compute the tax cost of the additional income assuming that business J’s taxable income before considering the additional income is $437,000. Compute the tax cost of the additional income assuming that business J has a $24,300 loss before considering the additional income.

Transcript

00:02 So, camp bell, a single taxpayer earns 436 ,000 in taxable income and a $3 ,800 in an interest firm in investment in state of new york bonds.

00:24 Now, how much federal tax was she owed? so from here, first of all, we look at the tax bracket.

00:30 So we know that the tax bracket is 10 % of income up to 11 ,000, and then 12 income from 11 ,000 to 4 ,000 to 4 ,725.

00:45 So you're going to have to calculate the federal income tax according to the bracket.

00:50 So i'm going to write down the first part.

00:52 So this is according to the tax bracket, federal tax bracket in 2024.

01:09 So from here, you can see as we just mentioned, the first bracket is 10 % bracket.

01:21 This is below 1 ,100, so 1100 multiplied by 0 .1 .1.

01:30 So the text in this part is 1100.

01:35 Then the next bracket goes to 12%, which is from 44 ,725 minus the first 11 ,000.

01:53 And this is going to be 12 % bracket.

01:56 So you multiply this difference by 12%, 0 .12 .12.

02:01 That is 4 ,047.

02:06 Now the third bracket is from 95 ,3752 to below this amount and above 44 ,725.

02:23 So at this bracket, you pay 22%.

02:30 And this part, you multiply it by 0 .22.

02:34 And so this part of the text is 11 ,143.

02:45 So the next text bracket is 24%.

02:49 This is between 182 ,000 and 100 minus 95 ,375.

03:06 So this should multiply by 0 .245.

03:41 This bracket is 24%.

03:46 So 1a210 minus 95 ,375 multiplied by 0 .24.

03:56 So that is 20814.

04:02 Now the next bracket is 32 brackets.

04:06 So 32 % goes from 1801 ,80 ,000, to 231 ,000 ,250 minus 182 ,100, and this, again, this bracket is 32%.

04:30 So the text you have to pay for this extra amount of income is going to be 231 ,0 ,250 minus 182 ,100, multiplied by 0 .32 ,000, multiplied by 0 .322 .2.

04:48 So you get 15 ,000, 728.

04:58 Now, the last bracket is between 436 above 231 ,250 and up to 436.

05:15 This is the income...

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