Answer:
The correct answer is $240,000 and $76,030.
Explanation:
According to the scenario, the computation for the given data are as follows:
Total Revenue = $350,000
Total cost = $100,000
So, Profit = $350,000 - $100,000 = $250,000
Allowable tax deduction = $10,000
So,Taxable income = $250,000 - $10,000 = $240,000
Tax to pay:
11% on first $40,000 = ( 11% × $40,000) =$4,400
22% on next $26,000 = ( 22% × $26,000) = $5720
39% on next $29,000 = ( 39% × $29,000) = $11,310
42% on ($240,000 - $110,000) = ( 42% × $130,000) = $54,600
So, Total tax payable = $4,400 + $5,720 + $11,310 + $54600
= $76,030
