Answer:
$27,000
Explanation:
The dollar amount of taxes paid is the earnings before tax multiplied by the tax rate.
The earnings before tax=sales-costs of sale-selling and administrative expenses-depreciation expense-interest expense
sales is $1,000,000
costs of sales=$1000,000*70%=$700,000
selling and administrative expenses=10%*$1,000,000=$100,000
depreciation expense=$100,000
interest expense=$10,000
earnings before tax=$1,000,000-$700,000-$100,000-$100,000-$10,000=$90,000
taxes paid=$90000
*30%=$27,000
