Ask Question
Yesterday, 23:54

A corporation in 2018 expects a gross income of $475,000 , total operating expenses of $350,000 , and capital investments of $25,000. In addition the corporation is able to declare $52,000 of depreciation charges for the year. The federal income tax rate is 21 %. What is the expected taxable income and total federal income taxes owed for the year 2018?

+2
Answers (1)
  1. Today, 00:11
    0
    Expected Taxable Income: $73,000

    Expected Taxes Owed: $15,330

    Explanation:

    Expected Income $475,000

    Less:

    Operating Expenses $350,000

    Depreciation charge $52,000

    Taxable Income $73,000 ($475,000 - $350,000 - $52,000)

    Tax $15,330 (21% tax x $73,000 taxable income)

    Net income $57,670 ($73,000 taxable income - $15,330 income tax)

    Note: The capital investment is an asset and will have no effect on the income statement
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A corporation in 2018 expects a gross income of $475,000 , total operating expenses of $350,000 , and capital investments of $25,000. In ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers