Question
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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