Question

5. [15pts) Given the following for a company's 2018 calendar year, calculate taxable income, ordinary gains and capital gains and gain taxes on assets, income tax due and capital gains taxes due, and total tax due. Assume 21% ordinary income tax rate and 15% capital gain tax rate. Gross income $2,450,000 Expenses: COGS $1,132,000 ОРЕХ $313,000 Financing expenses $125,000 Tax Depreciation Expenses $300,000 Asset Sales: Proceeds $450,000 Cost basis $425,000 Tax book value $300,000

Answer 1

7 Calculation of taxable income $2,450,000 (-) Goross en come Expenses: 1 COGS $ 1,132,000 OPEX & 313,000 financial Exp. $ 125,000 Tax Dep. Exp. & 300,000 18.70,000 Taxable income $580,000 ③ Calculation of ordinary goin Sales Proceeds f Assets value $ 450,000 $ 300,000 o Tarable Book $ 150,000 Ordinary gaun

13 $ 25000 Capital Gown Tone Cantical Gain - Tax Rate Cahisarl Grain tax- A510 83750 Totat Total Tox dure $ 121,800 + $ 31500 + $3750 = $157,050

3) Calculation of calidad Carin 450,000 425,000 ssuts i mit ur Grain - $ - Sale Proccede of Cost of Assets Capirend 25000 4) Calculation of Tax . ) - $580,000 Income Tax due Torrable Income Tax Rate 21% Income Tax . $580,000 421 to - $ 121,800 2 Ooo Ordinary Goin tox Oordinary goon- Torx parte Ardinary Gain tax - $ 150,000 2100 $31.500