Calulations
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ASSIGNMENT6.docxINTRODUCTION TO BUSINESS (BADM 101)
ASSIGNMENT #6 (60points)
1. AWOS C.B. International Incorporation showed the following taxable income from Operations in 2019. (Show all your calculations on the table)
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AWOS. CB. International Corporate Taxable Income SHOW YOUR WORK HERE |
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Sales |
$50,000,000 |
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Cost of goods sold |
$23,000,000 |
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GROSS PROFIT================ |
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OPERATING EXPENSES |
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Administrative Expenses |
$4,000,000 |
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Depreciation Expense |
$1,500,000 |
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Marketing Expenses |
$4,500,000 |
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TOTAL OPERATING EXPENSE=========== |
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Operating Income (Earnings before interest and taxes) ==== |
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Interest Expenses $1,000,000 |
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TOTAL TAXABLE INCOME============ |
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(20points)
2. THE TAX RATE ((Show all your calculations on the table)
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If a Corporation’s taxable income is
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The percentage on the base over the bracket |
It pays this amount on the base of the bracket.
SHOW YOUR CALCULATIONS BELOW HERE |
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Up to $50,000 |
15% |
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$50,001 to $75,000 |
25% |
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$75,001 to $10,000,000 |
34% |
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$10,000,000 to $335,000,000 |
35% |
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Over $335,000,000 |
39% |
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NOTE! Additional Surtaxes: · 5% on income between $100,000 and $335,000 · 3% on income between $15,000,000 and $18,333,333
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(35points
a. How much is the Company’s after-tax income? (5points) (Show your calculations)
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