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Prior to 1969, the basic corporation tax ratehad been 22
[#permalink]
30 May 2003, 21:47
30 May 2003, 21:47
Prior to 1969, the basic corporation tax ratehad been 22 percent of the first 25,000 of taxable income and 48 percent of all taxable income in excess of 25,000. in 1968, a big corporation chain formed a total of 201 separate incorporations of their outlets for the purpose of sheltering what would have otherwise been its 75 million of taxable income. If each outlet had income in excess of 25000, how much did the chain save in taxes?
A. 130,000
B. 240,000
C. 1,100,000
D. 1,300,000
E. 2,400,000
Anyone knowes how to solve it quickly?
A. 130,000
B. 240,000
C. 1,100,000
D. 1,300,000
E. 2,400,000
Anyone knowes how to solve it quickly?
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Re: Prior to 1969, the basic corporation tax ratehad been 22
[#permalink]
31 May 2003, 10:33
31 May 2003, 10:33
Expert Reply
somratp wrote:
Prior to 1969, the basic corporation tax ratehad been 22 percent of the first 25,000 of taxable income and 48 percent of all taxable income in excess of 25,000. in 1968, a big corporation chain formed a total of 201 separate incorporations of their outlets for the purpose of sheltering what would have otherwise been its 75 million of taxable income. If each outlet had income in excess of 25000, how much did the chain save in taxes?
A. 130,000
B. 240,000
C. 1,100,000
D. 1,300,000
E. 2,400,000
Anyone knowes how to solve it quickly?
A. 130,000
B. 240,000
C. 1,100,000
D. 1,300,000
E. 2,400,000
Anyone knowes how to solve it quickly?
Not sure if it is fast though.
0.48*201*25,000 = roughlly it is 2,500,000 without doing exact math.
From the answer choices, the closest is 2,400,000, so I will pick that.
Any corrections?
Re: Prior to 1969, the basic corporation tax ratehad been 22
[#permalink]
30 Dec 2003, 18:22
30 Dec 2003, 18:22
I am now in the process of checking all the previous math and verbal questions and want to bring up this one. I came up with answer (D)1,300,000. Anybody got the same answer?
