STEPS to Calculate the Federal Income Tax and Federal Income Tax Adjustment: Notice, there are no tax adjustments on this worksheet. 1. Calculate the actual Net Income before Federal Income Tax Expense: ver Income Statement CREDIT column total: Less Income Statement DEBIT column total: Plus Federal Income Tax Expense already paid: Hint: it's not 70,945 Total Net Income Before Federal Income Tax: 2. Determine the tax bracket from the Tax Rate Table using Net Income Before Federal Tax amount for 1 above: DO Over: But not over: D0 3. Based on the tax bracket identified the correct tax is: 4. Calculate the total Federal Income Tax expected using the Tax Rate Table information identified in step 3. 5. Calculate the Federal Income Tax Adjustment to ensure the company pays the required taxes. The total Federal Income Tax calculated in 4 above: Minus estimated Federal Income Tax Expense already paid: The adjustment for Federal Income Tax Expense: To complete the Federal Income Tax adjustment on the worksheet, GO to the second sheet called: WorksheetWFederalTaxAdj. 88 8 8 8
STEPS to Calculate the Federal Income Tax and Federal Income Tax Adjustment: Notice, there are no tax adjustments on this worksheet. 1. Calculate the actual Net Income before Federal Income Tax Expense: ver Income Statement CREDIT column total: Less Income Statement DEBIT column total: Plus Federal Income Tax Expense already paid: Hint: it's not 70,945 Total Net Income Before Federal Income Tax: 2. Determine the tax bracket from the Tax Rate Table using Net Income Before Federal Tax amount for 1 above: DO Over: But not over: D0 3. Based on the tax bracket identified the correct tax is: 4. Calculate the total Federal Income Tax expected using the Tax Rate Table information identified in step 3. 5. Calculate the Federal Income Tax Adjustment to ensure the company pays the required taxes. The total Federal Income Tax calculated in 4 above: Minus estimated Federal Income Tax Expense already paid: The adjustment for Federal Income Tax Expense: To complete the Federal Income Tax adjustment on the worksheet, GO to the second sheet called: WorksheetWFederalTaxAdj. 88 8 8 8
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use the steps to calculate the federal income tax. I’m not sure if your able to zoom in but I hope you are.
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