Question

A corporation in 2017 expects a gross income of 500000, total operating expences of 400000, and teh capitol investments of 20000. in addition the corporation is able to declare 60000 of depreciation charges for the year. what is the expected taxable income and total federal income taxes owed for teh year 2017?

Answer 1

Answer:

Taxable income = Gross income - Total operating expenses - Depreciation

= 500,000 - 400,000 - 60,000

= $40,000

Federal corporate income tax rate in 2017 was 35% so income taxes are;

= 40,000 * 35%

= $14,000