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

Essay

Lancaster Inc.expects to have taxable income of $275,000 for 2016 and a tax credit of $12,250.Assume that the graduated tax rate schedule is as follows:
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$$\begin{array} { l l } \$ 1 - \$ 100,000 & 15 \% \\\$ 100,001 - 200,000 & 22 \% \\\$ 200,001 - 460,000 & 28 \% + 5 \% \text { surtax } \\\$ 460,001 \text { and above } & 30 \%\end{array}$$ Required:
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Determine the tax expense for the first quarter, assuming that taxable income is $65,000.