Consider following information being for a manufacturing company: Revenues = $4,

Question

Consider following information being for a manufacturing company:

Revenues = $4,250,000 Labor expenses = $ 1,550,000 Material costs = $ 785,000 Depreciation = $ 332,500 Office supplies = $15,000 Debt interest expenses = $42,200 Rental expenses = $45,000 Proceeds from the sale of old cranes = $43,000

The sold cranes had a combined book value of $30,000 at the time of sale

. a. Determine the taxable income for 2013

b. Determine the taxable gains for 2013

c. Determine the amount of income taxes and gain taxes or loss credits for 2013.

Explanation / Answer

a) The taxable income for 2013 is $397,222.

b) The taxable gains for 2013 is $1,126,078.

c) Amount of tax for 2013 is 397,222.

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