Sales for ABC Inc. during the past year amounted to $32,200,000. The Cost of goods sold for the year were $7,500,000. Operating expenses totaled $9,300,000. The firms interest expense was $40,000.

Calculate the corporations tax liability by using the corporate tax rate structure below: (6pts)

Corporate Tax Rates

15% $0$50,000

25% $50,001$75,000

34% $75,001--$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