Two companies have the following values on their annual tax returns.

(a) Calculate the federal income tax for the year for each company.
(b) Determine the percent of sales revenue each company will pay in federal income tax.
(c) Estimate the taxes using an effective rate of 34% of the entire TI. Determine the percentage error made relative to the exact taxes in part(a).

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Company 2 Sales revenue, S Interest revenue, S Expenses, S Depreclation, S Company 1 1,500,000 31.000 -754,000 48,000 820,000 25,000 -591,000 18,000