Lancaster Inc Required:
Determine the Tax Expense for the First Quarter, Assuming

Essay

Lancaster Inc. expects to have taxable income of $275,000 for 20X1 and a tax credit of $12,250. Assume that the graduated tax rate schedule is as follows:
$$\begin{array} { l l } \$ 1 - \$ 100,000 & 15 \% \\\$ 100,000 - 200,000 & 22 \% \\\$ 200,000460,000 & 28 \% + 5 \% \text { surtax } \\\$ 460,000 \text { and above } & 30 \%\end{array}$$ Required:
Determine the tax expense for the first quarter, assuming that taxable income is $65,000.