Question

A consumer electronics company was formed to develop cell phones that run on or are recharged by fuel cells. The company purchased a warehouse and converted it into a manufacturing plant for $8,000,000. It completed installation of assembly equipment worth $1,500,000 on December 31st. The plant began operation on January 1st. The company had a gross income of $8,500,000 for the calendar year. Manufacturing costs and all operating expenses, excluding the capital expenditures, were $2,270,000. The depreciation expenses for capital expenditures amounted to $455,000. Click the icon to view the corporate tax schedule for 2015. (a) Compute the taxable income of this company. The taxable income of this company is $ (Round to the nearest dollar.)

B- How much will the company pay in federal income tax for the year?

Answer 1

solutions Given data, Revenue =$8500000 maintance =$2270000 depreciation 2$455000 Taxable income = Revenue -overhead - maintance -depreciation. - 8500000 - 2970000 -45500D =$ 5775000