ZuoTi.Pro
Question

Beta C-Corp, a had gross sales of $880,000, cost of sales of $540,000. The company also...

Beta C-Corp, a had gross sales of $880,000, cost of sales of $540,000. The company also paid salaries to employees in the amount of $145,000 (not included in cost of sales) for the current calendar year.  Dividends of $95,000 were paid at the end of the year.

What is the total income tax paid by the company? Use the 2020 rates for C-Corp.

Explain your answer with work and also if you take into account executive salaries and dividends recipient taxes, why you do so.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Rate of taxes for c- corp = 21%

Gross sales :    $880,000

Less cost of sales: $540,000

Less salary paid to

Employees. $145,000

Net profit : $195,000

So the $195,000 os the taxable income of business. Dividend paid by company not deductible from net profit because the dividend is not part of business expense. It is the distribution of profit.but executive salary is deductible because it is business expenses.

Tax rate =21%

Tax amount = 21% of 195,000

=$40,950

This is the taxes of corp now consider the taxes on dividend and executive salaries

Taxes rate for regular dividend for different basket and this dividend lie in below basket

$84,201 to $160,725 24%

Dividend taxes 24%of 95,000=$22,800

This is personal taxes not paid by corp.

0 0
Add a comment
Know the answer?
Add Answer to:
Beta C-Corp, a had gross sales of $880,000, cost of sales of $540,000. The company also...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Exercise 13-04 (Video) Operating data for Riverbed Corp are presented below. Sales revenue Cost of goods...

    Exercise 13-04 (Video) Operating data for Riverbed Corp are presented below. Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income 2020 $880,000 618,640 126,720 61,600 30,800 42,240 2019 $540,000 336,420 64,800 39,420 22,680 76,680 Prepare a schedule showing a vertical analysis for 2020 and 2019. (Round percentages to 1 decimal place, e.g. 12.1%.) RIVERBED CORP Condensed Income Statement For the Years Ended December 31 V 2020 2019 Amount Percent Amount Percent Sales $880,000 %...

  • During 2009, Raines Umbrella Corp. had sales of $734,000. Cost of goods sold, administrative and selling...

    During 2009, Raines Umbrella Corp. had sales of $734,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $562,000, $95,000, and $128,000, respectively. In addition, the company had an interest expense of $102,000 and a tax rate of 40 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corp. paid out $21,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued...

  • During 2018, Raines Umbrella Corp. had sales of $705,000. Cost of goods sold, administrative and selling...

    During 2018, Raines Umbrella Corp. had sales of $705,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $445,000, $95,000, and $140,000, respectively. In addition, the company had an interest expense of $70,000 and a tax rate of 25 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully deductible.) Suppose Raines Umbrella Corp. paid out $102,000 in cash dividends. Is this possible? If spending on net fixed assets and net working capital was...

  • Armor Corporation, a "C" Corp., manufactures & sells medical equipment. In 2017, Armor had gross revenues...

    Armor Corporation, a "C" Corp., manufactures & sells medical equipment. In 2017, Armor had gross revenues of $12 million. It incurred $450,000 in entertainment expenses. These expenses included sporting events, concerts, golf outings, dinners, operas and company parties. These expenses, common in the industry, were incurred by its sales force servicing current customers with regular contact to ensure equipment purchased is operating properly, and evaluating the need for additional equipment. The sales force also uses entertainment settings to generate new...

  • During 2018, Raines Umbrella Corp. had sales of $705,000. Cost of goods sold administrative and selling...

    During 2018, Raines Umbrella Corp. had sales of $705,000. Cost of goods sold administrative and selling expenses, and depreciation expenses were $445,000, $95,000, and $140,000, respectively In addition, the company had an interest expense of $70,000 and a tax rate of 25 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully deductible.) Suppose Raines Umbrella Corp. paid out $102,000 in cash dividends. Is this possible? If spending on net fixed assets and net working capital was...

  • Exercise 11-22 - In 2020, Sheffield Corp. had net sales of $593,000 and cost of goods...

    Exercise 11-22 - In 2020, Sheffield Corp. had net sales of $593,000 and cost of goods sold of $358,000. Operating expenses were $152,000, and interest expense was $8,000. The corporation's tax rate is 32%. The corporation declared preferred dividends of $14,500 in 2020, and its average common stockholders' equity during the year was $150,000. Prepare an income statement for Sheffield Corp.. Sheffield Corp. Income Statement Compute Sheffield Corp.'s return on common stockholders' equity for 2020. (Round answer to 1 decimal...

  • 1. Marigold Corp. estimates its annual warranty expense as 3% of annual net sales. The following...

    1. Marigold Corp. estimates its annual warranty expense as 3% of annual net sales. The following data relate to the calendar year 2021: Net sales $1506000 Warranty liability account     Balance, Dec. 31, 2020 $13000 debit before adjustment     Balance, Dec. 31, 2021 32180 credit after adjustment Which one of the following entries was made to record the 2021 estimated warranty expense? a Warranty Expense 32180     Warranty Liability 32180 b Warranty Expense 37635 Retained Earnings (prior-period adjustment) 7545     Warranty Liability 45180 c...

  • During 2010, Raines Umbrella Corp. had sales of $850,000. Cost of goods sold, administrative and selling...

    During 2010, Raines Umbrella Corp. had sales of $850,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $110,000, and $140,000, respectively. In addition, the company had an interest expense of $85,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.)     Suppose Raines Umbrella Corp. paid out $63,000 in cash dividends. Is this possible? If spending on net fixed assets and net working capital was zero, and if no...

  • During 2014, Raines Umbrella Corp. had sales of $650435. Cost of goods sold, administrative and selling...

    During 2014, Raines Umbrella Corp. had sales of $650435. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $505481, $93119, and $87958, respectively. In addition, the company had an interest expense of $87871 and a tax rate of 34 percent. (Ignore any tax loss carryback or carryforward provisions. This means that if the company does not have any taxable income, they do not pay any tax.) Suppose Raines Umbrella Corp. paid out $52467 in cash dividends. If...

  • During 2009, Raines Umbrella Corp. had sales of $750,000. Cost of goods sold, administrative and selling...

    During 2009, Raines Umbrella Corp. had sales of $750,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $561,000, $96,000, and $131,000, respectively. In addition, the company had an interest expense of $99,000 and a tax rate of 40 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corp. paid out $24,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT