Question
Jenny Kate Excavation Inc. has one Excavator. It was purchased at the beginning of 20X4 for $400,000. The excavator is in class 8 with a
Jenny Kate Excavation Inc. has one Excavator. It was purchased at the beginning of 20X4 for $400,000. The excavator is in class 8 with a 20% depreciation rate. Selected financial values for 20X5 are shown in the table. Assume a corporate tax rate of 35%. How much tax is owed in 20X5 if it is a regular year of operations? Assume that the interest expense is zero. Round to the nearest dollar.
Selected Financial Values Excavations Inc. 20X5
Sales $3,000,000
Cost of Goods Sold $1,350,000
SG&A $990,000
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Small Business Management Launching and Growing New Ventures
Authors: Justin Longenecker, Leo Donlevy, Terri Champion, William Petty, Leslie Palich, Frank Hoy
6th Canadian edition
176532218, 978-0176532215
