how is income tax expense calculated?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
how is income tax expense calculated?

Transcribed Image Text:Particulars
Amount(S) Amount($)
Sales
$574,750
Less: Sales discount
$2,610
Sales discount
s0,000
Net Sales
S562,140
Cost of Goods sold
$336,160
Gross Margin
S225,980
Operating Expense
Rent expense
$500
Supplies expense
$1150
Interest expense
S12,200
Insurance expense
$3,075
Bad debt expense
$899
Depreciation expense
$77,382
Total Operating Expense
$95,206
Other Revenue & expenses
Rent Income
S2000
Net income Before tax
$132,774
Income Tax Expense
$46,121
Net Income
S86,653
Step 2 of 4,
Statement of Retained Earnings
Retained Earning.begining balance
S95,937
Add:Net income
S86,653
Retained Earning, ending balance
$182,590
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