Question

Fast Rocket, Inc. generated a net loss of $5,000 in its first year (2018) and taxable income of $15,000 in its second (2019). Assuming a tax rate of 21%, what is Fast Rocket's total tax for both years

Answer 1

Answer:

$2100

Explanation:

Net loss = $5000

Taxable income = $15000

Tax rate = 21%

Fast Rocket's total tax for both years is determined by

Taxable income minus net loss multiplied by tax rate

= $(15000-5000) × 21%

= $10000 × 0.21

= $2,100

Fast Rocket's total tax for both years = $2100