Question

amputing income taxes) Sandersen Inc. sells minicomputers. During the past year, the company's sal 17 million The cost of its merchandise.sold.came to $1.97 million and.cash onerating eynenses were 50,000 poratici Data Table liabilit е согра Corporate Tax Rates 15% $0-$50,000 25% $50,001—$75,000 34% $75,001—$10,000,000 35% over $10,000,000 Additional surtax: .5% on income between $100.000 and $335.000 • 3% on income between $15,000,000 and $18,333,333 (Click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet.) Print Done er your answer in the answer box and then click Check Answer

Answer 1

Calculation of Taxable income Particulars Amount Sales Revenue $3,170,000 $1,970,000 Cost of goods sold Operating expense EBITDA $350,000 $850,000 $95,000 Depretiation EBIT $755,000 Interest expense $142,000 $613,000 Profit before tax Divedends paid Profits after divedend $23,000 $590,000

Calculation of Tax Tax Rate Taxable Income ($) 0 to 50,000 15% 50,000 to 75,000 $7,500 + 25% of the amount over 50,000 75,000 to 100,000 $13,750 + 34% Of the amount over 75,000 100,000 to 335,000 $22,250 + 39% of the amount over 100,000 335,000 to 10,000,000(The amount falls in this range) $113,900 + 34% of the amount over 335,000

Tax payable

Tax is 113900 +(255000*.34)

$353,940