A company wants to set up operations in a country with the following corporate tax rate structure: Taxable Income Tax Rate 15% $50,000 - $75,000

A company wants to set up operations in a country with the following corporate tax rate structure:

Taxable Income Tax Rate

<$50,000 - ->15%

$50,000 - $75,000 --> 25%

$75,000 - $100,000 --> 34%

>$100,000 --> 39%

Therefore, a taxable income of $60,000 would result in taxes due of $50,000*0.15 + ($60,000-$50,000)*0.25 = $50,000*0.15 + $10,000*0.25 = $10,000

If the compay expects gross revenues of $800,000, $400,000 in total costs, $70,000 in allowable tax deductions and $7,000 in a one-time business start-up credit, how much should the company expect to pay in taxes?

A $104,950

B $132,661

C $330,000

D $111,950