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Last year, Oviedo Products Corporation had sales of $1 million. The firm’s cost of goods sold...

Last year, Oviedo Products Corporation had sales of $1 million. The firm’s cost of goods sold amounted to 31% of sales and cash operating expenses were $240,000. Oviedo Products has $420,000 in equipment that it can expense over 5 years using simplified straight line depreciation. Therefore, the firm’s annual depreciation is (420,000/5) = $84,000. In addition, the firm received $30,000 in dividend income from its investments in common stocks of other companies. Also, Oviedo Products has a $750,000 loan from SunTrust, with an interest rate of 8%. Oviedo Products paid $20,000 in cash dividends to its common stockholders. Calculate the firm's tax liability.

please show work-confused on steps after reaching tax income

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