Apisco Tiger Inc. has annual cost of goods sold of $41,700, interest expense of $960, general...

Apisco Tiger Inc. has annual cost of goods sold of $41,700, interest expense of $960, general and administrative expenses of $8,800, dividends paid of $2,170, depreciation of $1,400, and a tax rate of 21 percent. What is the firm's taxable income if it added $3,840 to retained earnings during the year?

Group of answer choices

$6,010.00

$7,607.59

$18,572.30

$10,882.35

Solutions

Expert Solution

Net income after tax = Dividend paid + Retained earnings

=2,170+3,840=$6,010

Hence,Taxable income = Net income/(1-tax rate)

=6,010/(1-0.21)

=$7,607.59

jeff jeffy answered 2 years ago

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