Sanderson Inc. sells minicomputers. During the past year the companys sales were $3.07 million. The...
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Sanderson Inc. sells minicomputers. During the past year the companys sales were $3.07 million. The cost of its merchandise sold came to $1.87 million, and cash operating expenses were $340,000; depreciation expense was $93,000 and the firm paid $148,000 in interest on its bank loans. Also the corporation paid $28,000 in the form of dividends to its own common stockholders. Calculate the corporations tax liability by using the corporate tax rate structure below. 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
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
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