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Two companies A and B have the same revenues and expenses, and both are subject to taxes at the rate of 30%. The accounting Income
Two companies A and B have the same revenues and expenses, and both are subject to taxes at the rate of 30%. The accounting Income Statement for the two companies is as follows: Income Statement Revenue $1,000,000 Less: Cost of Goods Sold 200,000 Admin Expense 100,000 Depreciation 200,000 Operating Profit 500,000 Less: Interest Expense 200,000 Taxes (30%) 90,000 Net Income $ 210,000 However, assets in the two companies are subject to different Capital Contribution Rates amounting to $250,000 for A and 350,000 for B. What are the taxes paid in this fiscal year by each of these two companies
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