Last year, California Sushi and Such (CSS) had sales of $65 million. The firm's operating expenses amounted to $20 million and costs of goods sold totaled $15 million. In addition, CSS received $80,000 in dividend income, and paid $300,000 in dividends to its stockholders. CSS has $25 million in bonds outstanding with an annual interest payment of 9%. The firm also had $10 million in depreciation expense, and sold land for $3.5 million that had been purchased for $2.5 million several years earlier. What is the firm's tax liability?
Last year, California Sushi and Such (CSS) had sales of $65 million. The firm's operating expenses amounted to $20 million and costs of goods sold totaled $15 million. In addition, CSS received $80,000 in dividend income, and paid $300,000 in dividends to its stockholders. CSS has $25 million in bonds outstanding with an annual interest payment of 9%. The firm also had $10 million in depreciation expense, and sold land for $3.5 million that had been purchased for $2.5 million several years earlier. What is the firm's tax liability?
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Transcribed Image Text:Last year, California Sushi and Such (CSS) had sales
of $65 million. The firm's operating expenses
amounted to $20 million and costs of goods sold
totaled $15 million. In addition, CSS received
$80,000 in dividend income, and paid $300,000 in
dividends to its stockholders. CSS has $25 million in
bonds outstanding with an annual interest payment
of 9%. The firm also had $10 million in depreciation
expense, and sold land for $3.5 million that had been
purchased for $2.5 million several years earlier.
What is the firm's tax liability?
$3,954,300
$3,744,300
$3,735,900
$3,945,900
$4,200,000
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