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how is income tax expense calculated?

how is income tax expense calculated?

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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how is income tax expense calculated?

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 $182,590
Transcribed Image Text:Particulars Amount(S) Amount($) 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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