Andrews corporation has income from operations of $227,000. in addition, it received interest income of $22,700 and received dividend income of $30,100 from another corporation. finally, it paid $10,900 of interest income to its bondholders and paid $47,500 of dividends to its common stockholders. using the 2013 corporate tax schedule, what is the firm's federal income tax

Based on the various incomes of Andrews Corporation, their federal income tax according to the 2013 schedule was $79,903.70.

The taxable income can be found as:

= Income from operations + Interest income + Dividend income - Interest income

Dividend income is only 30% taxable.

= 227,000 + 22,700 + (30,100 x 30%) - 10,900

= $247,830

Falls in the $100,000 to $335,000 bracket. Tax will be:

= 22,250 + (Excess over $100,000 x 39%)

Solving gives:

= 22,250 + ( (247,830 - 100,000) x 39%)

= $79,903.70

In conclusion, their tax is $79,903.70.

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c.

explanation:

regressive tax taxes the poor and less of the wealthy. this the rich get richer and the poor get more poor. this would create a large wealth gap.