Hint you must first determine the companys federal

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: this %: $ 0.00 7,500 13,750 22,250 15% 25% 34% 39% Of the amount over: $0 50,000 75,000 100,000 Following is a portion of Rogers Company income statement. Given this information and the tax schedule above, what is the company's net income? (Hint: you must first determine the company's federal income tax.) Sales $95,000 Cost of goods sold ($42,000) Gross profit $53,000 Salaries ($10,000) Utilities ($1,000) Rent ($14,000) Penalties ($1,000) Federal income tax Net income a $22,800 b $22,950 c $24,200 d $23,800 e None of the above 6 Which of the following is a true statement? a Tax credits are subtracted before determining taxable income. b Tax exclusions are more valuable to a company than tax deductions. c Every expense allowed for financial statements is also allowed to be deducted when determining taxable income. d "Taxable income" is the amount owed to the government in tax. e Tax exclusions and tax deductions are of equal value to a business. 7 Sare Corp. is considering investing in a new p...
View Full Document

Ask a homework question - tutors are online