The Analtoly Corporation is an electronics dealer and distributor. Sales for the last year were $4.5 million, and cost of goods sold was $2 million and operating expenses totaled $1.2 million. Analtoly also paid $150,000 in interest expense, and depreciation expense totaled $50,000. In addition, the company sold securities for $120,000 that it had purchased 4 years earlier at a price of $40,000. Compute Taxable Income Compute the tax liability for Analtoly. Corporate Tax Rates Taxable Income Corporate Tax Rate $1 - $50,000 15% $50,001 - $75,000 25% $75,001 - $10 million 34% over $10 million 35% and $100,000 - $335,000 5% surtax $15m - $18.333 m 3% surtax Apply the usual important considerations.
The Analtoly Corporation is an electronics dealer and distributor. Sales for the last year were $4.5 million, and cost of goods sold was $2 million and operating expenses totaled $1.2 million. Analtoly also paid $150,000 in interest expense, and
- Compute Taxable Income
- Compute the tax liability for Analtoly.
Corporate Tax Rates
|
Taxable Income |
Corporate Tax Rate |
|
$1 - $50,000 |
15% |
|
$50,001 - $75,000 |
25% |
|
$75,001 - $10 million |
34% |
|
over $10 million |
35% and |
|
$100,000 - $335,000 |
5% surtax |
|
$15m - $18.333 m |
3% surtax |
Apply the usual important considerations.
c] Explain objectives of Corporate
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