Purchase Solution

taxable income

Not what you're looking for?

Ask Custom Question

A corporation sells computer. During the past year, the company's sales were $3,000,000. The cost of merchandise sold came to $2,000,000, and operating expenses was $500,000. The firm paid $150,000 in interest on its bank loan. It received $50,000 as cash dividend income. It paid dividends of $25,000.

Please calculate the corporation's income tax liability using the following tax rate schedule:

15% of the first $50,000 Taxable Income
25% of the next $25,000 Taxable Income.
34% of Taxable Income above $75,000.

Purchase this Solution

Solution Summary

Taxable income is shown in the solution.

Solution Preview

The taxable income is the operating income,
(Sales) - (Cost of Goods) - (operating expenses) =
plus the ...

Purchase this Solution

Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.