?( Computing income taxes ?) The William B. Waugh Corporation is a regional Toyo

Question

?(Computing income taxes?)

The William B. Waugh Corporation is a regional Toyota dealer. The firm sells new and used trucks and is actively involved in the parts business. During the most recent? year, the company generated sales of

$ 3.09 million. The combined cost of goods sold and the operating expenses were ?$2.03 million.? Also, ?$405000

in interest expense was paid during the year.

The? corporation's tax liability is

?(Round to the nearest? dollar.)

Corporate Tax Rates -15% $0-$50,000 $50,001-$75,000 $75,001 $10,000,000 over $10,000,000 25% 34% 35% 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.)

Explanation / Answer

Solution $ Sale- 3090000 Less- Cost of sale 2030000 Gross Profit 1060000 Less- Interest Paid 405000 Income During The year 655000 up to 50000   @15% 7500 50001 to 75000 @25% 6250 75000 to 655000@34% 197200

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