Using 2017’s tax rules, Amiouny, Inc. had sales revenue of $400,000. Costs other than depreciation and interest expense were 30 percent of sales. Depreciation expense was $12,000, interest expense was $23,000, dividends received were $10,000 and dividends paid were $5,000. Which of the following statements is most FALSE? (Use the corporate tax table.)The firm's taxable income was $248,000.The firm's average tax rate was 32.25 percent.The firm's marginal tax rate was 39 percent.The firm's tax for the year was $79,970.The after-tax income was $168,030.

Taxable income is income available after all expenses paid including depreciation and interest.

Answered: Using 2017’s tax rules, Amiouny, Inc.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Using 2017’s tax rules, Amiouny, Inc. had sales revenue of $400,000. Costs other than depreciation and interest expense were 30 percent of sales. Depreciation expense was $12,000, interest expense was $23,000, dividends received were $10,000 and dividends paid were $5,000. Which of the following statements is most FALSE? (Use the corporate tax table.)
1. The firm's taxable income was $248,000.
2. The firm's average tax rate was 32.25 percent.
3. The firm's marginal tax rate was 39 percent.
4. The firm's tax for the year was $79,970.
5. The after-tax income was $168,030.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions