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...

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?

Expert Solution

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	(5000015%+2500025%+ 2500034%+8800039%)	$ 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%

ekkarill92 answered 3 years ago

sales revenue 300,000 COGS 180,000 Selling and Admin 30,000 Interest rev 6,000 Dividends declared and paid...

sales revenue 300,000 COGS 180,000 Selling and Admin 30,000 Interest rev 6,000 Dividends declared and paid 9,000 Loss from discontinued 15,000 Dividend rev 8,000 Interest ex 8,000 What is the net amount of non-operating revenue and expenses? -81,000 -6,000 -(9,000) -(3,000)

Question

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...

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sales revenue 300,000 COGS 180,000 Selling and Admin 30,000 Interest rev 6,000 Dividends declared and paid...