A is corrent. The requirement is to determine the amount of federal income tax on Mason Corporation’s 2013 taxable income of $80,000. The amount of tax determined from the table is $13,750 plus 34% of the excess of the $80,000 of TI over $75,000. $13,750 + 34% ($80,000 − $75,000) = $15,450.
B is incorrect.Mason’s 2013 federal income tax would be $13,750 plus 34% of TI over $75,000.
C is incorrect. Mason’s 2013 federal income tax would be $13,750 plus 34% of TI over $75,000.
D is incorrect. Mason’s 2013 federal income tax would be $13,750 plus 34% of TI over $75,000.
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