This year, Mesa Inc.’s before-tax income was $11,252,000. It paid $529,000 income tax to Minnesota and $451,000 income tax to Illinois. Compute Mesa’s federal income tax. What is Mesa’s tax rate on its income?

Before-tax income                                                                   $ 11,252,000

Less: Deduction for state income tax(529000+451000)   $      980,000

Taxable Income                                                                   $   10,272,500

Tax rate                                                                                                        21%

Federal income tax                                                           $   2,157,225.00

Mesa’s combined tax rate

= ([$980,000 state tax + $2,157,225 federal tax] ÷ $11252000)27.88%

Explanation:

one of the disadvantages of getting a government sponsored mortgage is they put a limit on the purchase price of the house. because the government is in charge of the mortage loan and terms, they are able to control how much money they are allowing someone to take out for the loan. not only are they incontrol, it's a lengthy process for a government sponsored mortgage.