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Sales for J. P. Hulett Inc. during the past year amounted to $4.1 million. The firm supplies statistical information to engineering companies. Gross profits totaled

Sales for J. P. Hulett Inc. during the past year amounted to $4.1 million. The firm supplies statistical information to engineering companies. Gross profits totaled $1.15 million, and operating and depreciation expenses were $498,000 and 352,000 respectively. Dividend income for the year was $11,800

Compute 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:

bullet

5% on income between $100,000 and $335,000

bullet

3% on income between $15,000,000 and $18,333,333

Calculate the operating profits.

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