Question

Tantor​ Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods. During 2018 the firm earned $ 90 comma 000 before taxes. a. Calculate the​ firm's tax liability using a flat tax rate of 24​%. b. How much are Tantor​ Supply's 2018 ​after-tax earnings?

Answer 1

Tantor supply after-tax income 68,400

Step-by-step explanation:

Tantor Supply's pre-tax income = 90,000 dollars

tax rate: 24% = 24/100 = 0.24

before tax income x tax-rate = tax income expense

90,000 x 0.24 = 21,600 tax expense

before tax - tax income expense = net income

90,000 - 21,600 = 68,400

Tantor's Supply after tax income 68,400