Answer:The company should pay $3,000 in taxes
Explanation:
Taxable Income= Gross Revenues -Total cost- Allowable Deduction
=$ 500,000 –$ 450,000 - $30,000= $20,000
Gross Tax Liability=Given that the taxable income and tax rate as
<$50,000--- 15%
$50,000 - $75,000 ----25%
$75,000 - $100,000----34%
>$100,000----- 39%
Our calculate taxable income is less than <50,000, ie $20,000 from our Gross revenue
The gross tax liability, will now be 15% of $20,000=0.15 x 20,000= $3000
The company should pay $3,000 in taxes
