All categories

2 years ago

Computing Income Taxes

Business

1 answer:

Anastaziya [24]2 years ago

5 0

Answer:

The corporation's tax liability is $ 228,820.

Explanation:

To calculate tax liability we first have to find net profit. Detail calculation is given below.

Net profit Calculation

Sales $ 3,130,000

cost of goods sold and the operating expenses ($ 2,080,000)

Interest expense ( $ 377,000)

Net profit $ 673,000

Tax liability Calculation

Income fall under Tax bracket of 34% ($75,001 to $10,000,0000 for corporate tax. No additional surtax will be charged as income do not fall under its net.

Tax liabilty = 673,000 * 34% = $ 228,820

You might be interested in

Investigating communication in the workplace by finding optimal ways to set up a communication network system for employees who

andrew11 [14]

Answer:

Cybernetic approach

Explanation:

Cybernetic approach is the method or the approach for exploring the system of the regulatory, its possibilities, structures and constraints. It involve the study of derived concepts, feedback and black boxes like the communication and the control in business and living organisms, involving the self - organization.

Therefore, when the communication is investigated at the workplace through finding the optimal methods which is set up for the communication network system for the employees who telecommute, states the cybernetic method to communication.

4 0

3 years ago

What is the last step in planning your budget?

mote1985 [20]

C. review and revisions

7 0

2 years ago

Read 2 more answers

What kind of economy uses a free-enterprise system?

alekssr [168]

Answer:

The U.S. economy is a free enterprise system.

Explanation:

That means that individuals — and not the government — own most of our country's resources.

5 0

2 years ago

On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at t

ss7ja [257]

Answer and Explanation:

The amortization schedule is presented below:

Date Cash Interest expense Amortization Balance

A B C = (A - B)

January 1, Year 1 $58,998

End of Year 1 $3,944 $3,717 $227 $58,771

E = D - C

End of Year 2 $3,944 $3,702.573 $241 $58,530

End of Year 3 $3,944 $3,687.39 $257 $58,273

End of Year 4 $3,944 $3,671 $273 $58,000

Working notes:

For computing the missing amount first we have to find out the interest expense rate which is

= $3,717 ÷ $58,998

= 6.30%

For year 2,

The interest expense is

= $58,771 × 6.30%

= $3,702.573

For year 3,

The interest expense is

= $58,530 × 6.30%

= $3,687.39

4 0

3 years ago

Assume the macro islands can produce either 25 fishing boats or 150 jars of guava jelly in one hour. the micro islands can produ

LenKa [72]

Answer:

The correct answer is letter "C": the Macro Islands have a comparative advantage in producing fishing boats, and the Micro Islands have a comparative advantage in producing guava jelly.

Explanation:

Comparative advantage is an advantage an individual, organization or country has to use opportunity costs in their production compared to their competitors. The scenario described above does not imply that the individual, organization or country has an absolute advantage.

In the example proposed:

Comparative advantage of Macro islands in fishing boats = $\frac{25}{150}= 0.17$
Comparative advantage of Micro islands in fishing boats = $\frac{30}{300} = 0.10$

Comparative advantage of Macro islands in jars = $\frac{150}{25} = 6$
Comparative advantage of Micro islands in jars = $\frac{300}{30} = 10$

Thus, the Macro Islands have a comparative advantage in producing fishing boats, and the Micro Islands have a comparative advantage in producing guava jelly.

5 0

3 years ago