Question

Given the following information, calculate the tax liability for year 1. The Net Operating Income is...

  1. Given the following information, calculate the tax liability for year 1. The Net Operating Income is $97,200. Capital Expenditure is $8,500. Interest is $51,219. Principal is $8,852. Depreciation $21,662. Amortized Financing Costs is 792. Ordinary tax rate is 35%.

    $26,059

    $9,488

    $11,209

    $27,640
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Calculation of tax liability Amount $
Net Operating Income 97,200.00
Less:
Depreciation 21,662.00
Interest 51,219.00
Amortized Financing Costs         792.00
Income before tax 23,527.00
Tax @ 35%      8,234.45
Net Income 15,292.55
The tax liability for year 1 is $ 8,234.45.
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