Computing

income

taxes)

Sandersen Inc. sells minicomputers. During the past year, the company's sales were

$ 3.05

million. The cost of its merchandise sold came to

$1.93

million, and cash operating expenses were

$360,000

depreciation expense was

$99,000

and the firm paid

$145,000

in interest on its bank loans. Also, the corporation paid

$24,000

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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Corporate Tax Rates
15%	$0long dash$50,000
25%	$50,001long dash$75,000
34%	$75,001long dash$10,000,000
35%	over $10,000,000
Additional surtax:
bullet 5% on income between $100,000 and $335,000
bullet 3% on income between $15,000,000 and $18,333,333

.

The corporation's tax liability is

$