In: Accounting
sales:$1,400,000
COGS:$845,000
G&A:$300,000
advertising:$$75,000
loan :$120,000
loan interest:$12,000
recieved dividend $20,000
paid common stock:$10,000
paid pref stock:$15,000
what is federal tax bill?
what is average tax rate? what is marginl tax rate?
Particulars | Amount | Amount |
Sales | $ 14,00,000 | |
Less: Cost of Goods Sold | $ 8,45,000 | |
Gross Profit | $ 5,55,000 | |
Less: Operating Expenses | ||
General and Admin | $ 3,00,000 | |
Advertising | $ 75,000 | |
Total Operating Expense | $ 3,75,000 | |
Operating Income | $ 1,80,000 | |
Other Income and Expenses | ||
Dividend | $ 20,000 | |
Interest Expense | $ -12,000 | $ 8,000 |
Taxable Income | $ 1,88,000 | |
Federal Tax | (50000*15%+25000*25%+ 25000*34%+88000*39%) | $ 56,570 |
Average Tax Rate | 56570/188000 | 30.09% |
Marginal Tax Rate | 39.00% |
Federal Tax bill = $56,570
Average Tax rate = 30.09%
Marginal Tax Rate = 39%