Global Industries has income of $55,000 and an average income tax rate of 20% on the...
Global Industries has income of $55,000 and an average income tax rate of 20% on the $55,000 of income. The company is planning a project that will increase income by $30,000. Assuming the following tax brackets: 15% on income 0-27500, 25% on income 27500-63000 and 30% on income over $63000. What is the incremental income tax on the new project?
Homework Answers
Now, the total income is $55,000 + $30,000 = $85,000
which falls under the 30% tax slab.
Hence, the incremental income tax on the new project is 30%.
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Global Industries has income of $55,000 and an average income
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