Sales revenue, $ Interest revenue, $ Expenses, $ Depreciation, $ Company 1 1,500,000 31,000 -754,000 48,000 Company 2 820,000 25,000 -591,000 18,000 a. Calculate the federal income tax for the year for each company b. Determine what percentage of each company's sales revenue was paid in taxes. C. Estimate the taxes using an effective rate of 34% of the entire TI. Determine the percentage error made relative to the exact taxes in part (a)

Sales revenue, $ Interest revenue, $ Expenses, $ Depreciation, $ Company 1 1,500,000 31,000 -754,000 48,000 Company 2 820,000 25,000 -591,000 18,000 a. Calculate the federal income tax for the year for each company b. Determine what percentage of each company's sales revenue was paid in taxes. C. Estimate the taxes using an effective rate of 34% of the entire TI. Determine the percentage error made relative to the exact taxes in part (a)

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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