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Elgin Battery Manufacturers had sales of $890,000 in 2015 and their cost of goods sold is 569,600. Selling and administrative expenses were 89,000. Depreciation expense was $11,000 and interest expense for the year was $11,000. The firm's tax rate is 33 percent. What is the dollar amount of taxes paid in 2015

User Raxvan
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Final answer:

The dollar amount of taxes paid in 2015 by Elgin Battery Manufacturers is $69,102.

Step-by-step explanation:

To calculate the dollar amount of taxes paid in 2015, we need to find the firm's taxable income first. Taxable income is calculated by subtracting the cost of goods sold, selling and administrative expenses, depreciation expense, and interest expense from the sales revenue. In this case, taxable income would be $890,000 - $569,600 - $89,000 - $11,000 - $11,000 = $209,400.

Next, we need to calculate the tax amount by multiplying the taxable income by the tax rate. In this case, the tax rate is 33 percent, so the tax amount would be $209,400 * 0.33 = $69,102.

Therefore, the dollar amount of taxes paid in 2015 by Elgin Battery Manufacturers is $69,102.

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