Question

Sandersen Inc. sells minicomputers. During the past​ year, the​ company's sales were $3.13 million. The cost of its merchandise sold came to ​$1.83 ​million, and cash operating expenses were ​$360,000​; depreciation expense was ​$95,000​, and the firm paid​$140,000 in interest on its bank loans.​ Also, the corporation paid ​$20,000 in the form of dividends to its own common stockholders. Calculate the​ corporation's tax liability by using the corporate tax rate structure in the popup​ window,

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Data Table

Corporate Tax Rates
​ 15%	​$0—​$50,000
​ 25%	​$50,001—​$75,000
​ 34%	​$75,001—​$10,000,000
​ 35%	over​ $10,000,000
Additional​ surtax:
• ​5% on income between​ $100,000 and​ $335,000
• ​3% on income between​ $15,000,000 and​ $18,333,333
​(Click on the icon located on the​ top-right corner of the data table above in order to copy its contents into a spreadsheet.​)

Answer 1