Tatun Inc. pays state income tax at a 5% rate and federal income tax at a...

Tatun Inc. pays state income tax at a 5% rate and federal income tax at a 21% rate. Tatun recently engaged in a transaction in Mexico, which levied a $25,200 income tax on the transaction. Tatun's pretax net income for the current year is $1,913,900. Compute Tatun's total income tax burden assuming that:

The Mexican tax is nondeductible for state and federal tax purposes.
The Mexican tax is deductible for state and federal tax purposes.

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Answer:

ekkarill92 answered 2 years ago

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