Question
Sales for J. P. Hulett Inc. during the past year amounted to $3.7 million. The firm supplies statistical information to engineering companies. Gross profits totaled
Sales for J. P. Hulett Inc. during the past year amounted to $3.7 million. The firm supplies statistical information to engineering companies. Gross profits totaled $1.18 million, and operating and depreciation expenses were $495,000 and $350,000, 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% | $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
Calculate the operating profits:
The operating profits are __ (Round to the nearest dollar.)
Calculate the taxable dividend income:
The taxable dividend income is __ (Round to the nearest dollar.)
Calculate the taxable ordinary income:
The taxable ordinary income is __ (Round to the nearest dollar.)
Calculate the total tax due:
The total tax due is __ (Round to the nearest dollar.)
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