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.