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In 2017, NB Inc.'s federal taxable income was $242,000. Computethe required installment payments of...

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Accounting

In 2017, NB Inc.'s federal taxable income was $242,000. Computethe required installment payments of 2018 tax in each of thefollowing cases: NB’s 2018 taxable income is $593,000. NB’s 2018taxable income is $950,000. NB’s 2018 taxable income is$1,400,000.

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Answer No. TAXABLE INCOME Total Tax (As per working Note No. of Installment Per Installment
(a) $ 593000 $ 201620 4 50405
(b ) $ 950000 $ 323000 4 80750
(c ) $ 1400000 $ 476000 4 119000
WORKING NOTE:
Answer (a) Taxable Income $593,000
Cumulative Taxable Income $           50,000.00 $           75,000.00 $      1,00,000.00 $     3,35,000.00 $       5,93,000.00
Taxable Income (A) $           50,000.00 $           25,000.00 $         25,000.00 $     2,35,000.00 $       2,58,000.00
Tax Rate (B) 15% 25% 34% 39% 34%
Tax on Income (A x B) $              7,500.00 $             6,250.00 $            8,500.00 $        91,650.00 $          87,720.00
Total Income taxes $201,620
Answer (b) Taxable Income $ 950,000
Cumulative Taxable Income $           50,000.00 $           75,000.00 $      1,00,000.00 $     3,35,000.00 $       9,50,000.00
Taxable Income $           50,000.00 $           25,000.00 $         25,000.00 $     2,35,000.00 $       6,15,000.00
Tax Rate 15% 25% 34% 39% 34%
Tax on Income $              7,500.00 $             6,250.00 $            8,500.00 $        91,650.00 $       2,09,100.00
Total Income taxes $ 323,000
Answer (c) Taxable Income $ 1,400,000
Cumulative Taxable Income $           50,000.00 $           75,000.00 $      1,00,000.00 $     3,35,000.00 $    14,00,000.00
Taxable Income $           50,000.00 $           25,000.00 $         25,000.00 $     2,35,000.00 $    10,65,000.00
Tax Rate 15% 25% 34% 39% 34%
Tax on Income $              7,500.00 $             6,250.00 $            8,500.00 $        91,650.00 $       3,62,100.00
Total Income taxes $ 476,000

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In: AccountingIn 2017, NB Inc.'s federal taxable income was $242,000. Computethe required installment payments of 2018...In 2017, NB Inc.'s federal taxable income was $242,000. Computethe required installment payments of 2018 tax in each of thefollowing cases: NB’s 2018 taxable income is $593,000. NB’s 2018taxable income is $950,000. NB’s 2018 taxable income is$1,400,000.

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