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