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5 points Item Skipped eBook Print References Item 20 Item 20 5 points Item Skipped Oakdale...

5 points Item Skipped eBook Print References Item 20 Item 20 5 points Item Skipped Oakdale Fashions, Inc.’s, 2021 income statement is reported below. (Use corporate tax rate of 21 percent for your calculations.) Oakdale Fashions, Inc., Income Statement for 2021 Net sales (all credit) $ 595,000 Less: Cost of goods sold 227,000 Gross profits $ 368,000 Less: Other operating expenses 102,000 EBITDA $ 266,000 Less: Depreciation and amortization 16,200 EBIT $ 249,800 Less: Interest 83,000 EBT $ 166,800 Less: Taxes Net income $ Determine the firm's 2021 tax liability.

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Answer #1

Ans : Tax liability = EBT * cooperate tax rate

= $ 166,800 * 21 %

=$ 35,028.

Net Income = EBT - taxes

= $ 166,800 - $ 35,028

= $ 131,772.

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