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 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.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section2.A: Taxes

Problem 2P

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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