1. [5] A company, operating in the U.S., has the revenues and expenses shown in
ID: 2542021 • Letter: 1
Question
1. [5] A company, operating in the U.S., has the revenues and expenses shown in the table. Revenues 220,000 Expenses Labor Materials 50,000 10,000 Depreciation 6,000 2,000 1,000 Rent Insurance Compute income tax as a result of this operation if the company is part of a large, highly profitable a. company, such as Walmart (one of the most profitable ones in the U.S.) b. Compute income tax as a result of this operation of this operation if the company is an independent corporation and not owned by any other company c. Give THREE types of taxes that are NOT based on "taxable income."Explanation / Answer
Ans 1 Taxable Income= Revenue-Expenses 220000-(50000+10000+6000+2000+1000) 151000 Federal tax for companies 151000*35% 52850 ans 1 ans 2 Corporate tax 22250+(151000-100000)*39% 42140 ans 3 Three type of taxes are 1) Sales Tax 2) Goods and service tax 3) property Taxes
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