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G. R. Edwin Inc. had sales of ​$6.02 million during the past year. The cost of goods sold amounted to ​$3.06 million. Operating expenses totaled ​$2.65 ​million, and interest expense was ​$27 comma 000. Determine the​ firm's tax liabilityby using the corporate tax rate structure in the popup​ window.

User Linga
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Answer:

Step-by-step explanation:

Assume: The Federal Alternative Minimum Tax rate of 20%

G.R EDWIN INC $

Sales 6, 020, 000.00

Less:

Cost of goods sold 3, 060,000.00

Gross profit 2,960,000.00

Less:

Operating Expenses 2,650,000.00

Profit 310,000.00

Less: Int Expense 27,000.00

Net Profit 283,000.00

Tax liability assuming tax rate of 20%

= 283,000 * 20%

=$56,600

User Jeff Sloyer
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