1 (15 marks) The Analtoly Corporation is an electronics dealer and distributor. Sales for the last year were $4.5 million, and cost of goods sold was $2 million and operating expenses totaled $1.2 million. Analtoly also paid $150,000 in interest expense, and depreciation expense totaled $50,000. In addition, the company sold securities for $120,000 that it had purchased 4 years earlier at a price of $40,000. a. Compute Taxable Income (5 marks) b. Compute the tax liability for Analtoly. (5 marks) Corporate Tax Rates Taxable Income Corporate Tax Rate $1 - $50,000 15% $50,001 - $75,000 25% $75,001 - $10 million 34% over $10 million 35% and $100,000 $335,000 5% surtax $15m $18.333 m 3% surtax Apply the usual important considerations