Question

Flip's Pizzeria Inc. has the following financial items for the current year: Advertising Expenses $50,000 Cost of Goods Sold $400,000 Other Operating Expenses $395,000 Sales $2,340,000 Cost of Equipment purchased during the year (10 year estimate useful life, O salvage value) $505,000 Calculate Flip's taxable liability for the current year. Answer is complete but not entirely correct. в стр 1 А Taxable Liability = $ 303,345 %

Answer 1

Please note tax rate is not given in the question

hence only taxable income is calculated below

Please apply tax rate and you will get the answer

Sales $2,340,000 $400,000 $1,940,000 Less: Cost of Goods Sold Gross profit Less: Operating Expense Advertising expenses Other operating expenses Depreciation Total Operating Income Taxable income $50,000 $395,000 $50,500 $495,500 $1,444,500