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Nova Circuits had $780,000 in sales. The cost of goods sold was 66% of sales. Selling and administrative expenses were 10% of sales. Depreciation expense was $12,000, and interest expense was $10,000. The tax rate is 28%. What is the amount of taxes paid? a) $47,040 b) $50,000 c) $46,256 d) $52,200

Nova Circuits had $780,000 in sales. The cost of goods sold was 66% of sales. Selling and administrative expenses were 10% of sales. Depreciation expense was $12,000, and interest expense was $10,000. The tax rate is 28%. What is the amount of taxes paid? a) $47,040 b) $50,000 c) $46,256 d) $52,200

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...
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Nova Circuits had $780,000 in sales. The cost of goods sold was 66% of sales. Selling and administrative expenses were 10% of sales. Depreciation expense was $12,000, and interest expense was $10,000. The tax rate is 28%. What is the amount of taxes paid? a) $47,040 b) $50,000 c) $46,256 d) $52,200
Transcribed Image Text:Nova Circuits had $780,000 in sales. The cost of goods sold was 66% of sales. Selling and administrative expenses were 10% of sales. Depreciation expense was $12,000, and interest expense was $10,000. The tax rate is 28%. What is the amount of taxes paid? a) $47,040 b) $50,000 c) $46,256 d) $52,200
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