A consumer electronics company was formed to develop cell phones that run on or are recharged by fuel cells. The company purchased a warehouse and converted it into a manufacturing plant for $8,000,000. It completed installation of assembly equipment worth $1,700,000 on December 31st. The plant began operation on January 1st. The company had a gross income of $8,600,000 for the calendar year. Manufacturing costs and all operating expenses, excluding the capital expenditures, were $2,170,000. The depreciation expenses for capital expenditures amounted to $465,000. The corporate tax rate is 21%.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A consumer electronics company was formed to develop cell phones that run on or are recharged by fuel cells. The
company purchased a warehouse and converted it into a manufacturing plant for $8,000,000. It completed installation of
assembly equipment worth $1,700,000 on December 31st. The plant began operation on January 1st. The company had
a gross income of $8,600,000 for the calendar year. Manufacturing costs and all operating expenses, excluding the
capital expenditures, were $2,170,000. The depreciation expenses for capital expenditures amounted to $465,000. The
corporate tax rate is 21%.
(a) Compute the taxable income of this company.
The taxable income of this company is $
(Round to the nearest dollar.)
Transcribed Image Text:A consumer electronics company was formed to develop cell phones that run on or are recharged by fuel cells. The company purchased a warehouse and converted it into a manufacturing plant for $8,000,000. It completed installation of assembly equipment worth $1,700,000 on December 31st. The plant began operation on January 1st. The company had a gross income of $8,600,000 for the calendar year. Manufacturing costs and all operating expenses, excluding the capital expenditures, were $2,170,000. The depreciation expenses for capital expenditures amounted to $465,000. The corporate tax rate is 21%. (a) Compute the taxable income of this company. The taxable income of this company is $ (Round to the nearest dollar.)
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