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Last year, Marylynn opened Baron’s Appliance Sales and Service. Her tax accountant provided the year’s results.            Gross income = $320,000            Business expenses = $149,000           MACRS depreciation = $95,000           Average federal tax rate = 18.5%           Average state tax rate = 6%           City and county flat tax rates combined = 4.5%Determine the following for Marylynn.a. Taxable income.b. Exact amount of federal income taxes.c. Estimate of percent of the GI needed to pay all income taxes—federal, state, city and county.

Last year, Marylynn opened Baron’s Appliance Sales and Service. Her tax accountant provided the year’s results.            Gross income = $320,000            Business expenses = $149,000           MACRS depreciation = $95,000           Average federal tax rate = 18.5%           Average state tax rate = 6%           City and county flat tax rates combined = 4.5%Determine the following for Marylynn.a. Taxable income.b. Exact amount of federal income taxes.c. Estimate of percent of the GI needed to pay all income taxes—federal, state, city and county.

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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Last year, Marylynn opened Baron’s Appliance Sales and Service. Her tax accountant provided the year’s results.
            Gross income = $320,000
            Business expenses = $149,000
           MACRS depreciation = $95,000
           Average federal tax rate = 18.5%
           Average state tax rate = 6%
           City and county flat tax rates combined = 4.5%
Determine the following for Marylynn.
a. Taxable income.
b. Exact amount of federal income taxes.
c. Estimate of percent of the GI needed to pay all income taxes—federal, state, city and county.

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