Computing Income Taxes

The William B. Waugh Corporation is a regional Toyota dealer. The firm sells new and used trucks and is actively involved in the parts business. During the most recent year, the company generated sales of 3.13 million . The combined cost of goods sold and the operating expenses were $2.08 million . Also, 377,000

in interest expense was paid during the year. Calculate the corporation's tax liability by using the corporate tax rate structure in the popup window,

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:
5% on income between $100,000 and $335,000
3% on income between $15,000,000 and $18,333,333

.

The corporation's tax liability is .....?