Calculate the amount of federal income tax that the


Rolf Lee is now exploring whether it might be better to organize the Capital-Ideas Company as a subchapter S corporation based on information contained in Problem 5.

A. Calculate the amount of federal income tax that the Capital-Ideas Company would pay next year.

B. What would be the marginal tax rate on the last dollar of taxable income and what would be the average tax rate?

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Finance Basics: Calculate the amount of federal income tax that the
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