Net Taxable income Revenue Direct costs Gross Profit General overhead Solution Math behind solution S 400,000.00 $ (320,000.00) $ 80,000.00 Revenue direct costs S (45,000.00) S Net Profit before taxes 35,000.00 Gross profit-General overhead (add the below line items as they are not tax deductible) 50% M&E office plotter S $ office furniture 3,500.00 2,200.00 2,800.00 (subtract the following as they are tax deductible) deprectaion for plotter S (275.00) depreciation office furniture S (575.00) Net taxable income from $ 42,650.00 35,000+3500+2200+2800-275-575 construction business Income from dividends S 28,000.00 income from interest S 1,800.00 Paid interest S (1,200.00) Total (marginal) net taxable S 71,250.00 42650+28000+1800-1200 income Taxes @39% S 27,787.50 (0.39 71250) Net profit (net profit before S 35,812.50 35000+28000+1800-1200-27787.50 taxes+interest-taxes)