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Calculate the corporate income tax for Quarter 2 from the following income statement. Use a corporate income tax rate of 21%. Q1 (x1000) Q2(x1000) Net Sales 112 174 COGS (18) (32) Gross Profit 94 Overhead (31) (53) Pre-tax Income 63 89 Corporate Income Tax = $ [?] 142

Calculate the corporate income tax for Quarter 2 from the following income statement. Use a corporate income tax rate of 21%. Q1 (x1000) Q2(x1000) Net Sales 112 174 COGS (18) (32) Gross Profit 94 Overhead (31) (53) Pre-tax Income 63 89 Corporate Income Tax = $ [?] 142

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculate the corporate income tax for Quarter 2 from the following income statement. Use a corporate income tax rate of 21%. | | Q1 (x1000) | Q2 (x1000) | |-------------------|------------|------------| | **Net Sales** | 112 | 174 | | **COGS** | (18) | (32) | | **Gross Profit** | 94 | 142 | | **Overhead** | (31) | (53) | | **Pre-tax Income**| 63 | 89 | **Corporate Income Tax = $ [?]** Multiply your result by 1000 before entering. For example: 1.23 (x1000) = $1,230. [Enter] --- This instructional image features an income statement for Quarters 1 and 2, along with a prompt to calculate corporate income tax for Q2 using a tax rate of 21%. Each category from the income statement provides values in thousands (x1000): 1. **Net Sales**: Total revenue from sales. 2. **COGS (Cost of Goods Sold)**: Direct costs associated with production. 3. **Gross Profit**: Revenue minus COGS. 4. **Overhead**: Indirect recurring costs. 5. **Pre-tax Income**: Earnings before tax (Gross Profit minus Overhead). The task is to calculate the corporate income tax based on the pre-tax income of $89,000 in Q2. To find the tax, multiply the pre-tax income by 21%, and then multiply by 1000 to convert to the actual dollar amount.
Transcribed Image Text:Calculate the corporate income tax for Quarter 2 from the following income statement. Use a corporate income tax rate of 21%. | | Q1 (x1000) | Q2 (x1000) | |-------------------|------------|------------| | **Net Sales** | 112 | 174 | | **COGS** | (18) | (32) | | **Gross Profit** | 94 | 142 | | **Overhead** | (31) | (53) | | **Pre-tax Income**| 63 | 89 | **Corporate Income Tax = $ [?]** Multiply your result by 1000 before entering. For example: 1.23 (x1000) = $1,230. [Enter] --- This instructional image features an income statement for Quarters 1 and 2, along with a prompt to calculate corporate income tax for Q2 using a tax rate of 21%. Each category from the income statement provides values in thousands (x1000): 1. **Net Sales**: Total revenue from sales. 2. **COGS (Cost of Goods Sold)**: Direct costs associated with production. 3. **Gross Profit**: Revenue minus COGS. 4. **Overhead**: Indirect recurring costs. 5. **Pre-tax Income**: Earnings before tax (Gross Profit minus Overhead). The task is to calculate the corporate income tax based on the pre-tax income of $89,000 in Q2. To find the tax, multiply the pre-tax income by 21%, and then multiply by 1000 to convert to the actual dollar amount.
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