A consumer electronics company was formed to develop cell phones that run on or are recharged by
Question:
A consumer electronics company was formed to develop cell phones that run on or are recharged by fuel cells. The company purchased a warehouse and converted it into a manufacturing plant for $8,000,000. It completed installation of assembly equipments worth $1,100,000 on December 31st. The plant began operation January 1st. The company had a gross income of $8,4000 for the calendar year. Manufacturing costs and all operating expenses, excluding the capital expenditures, were $2,320,000. The depreciation expenses for capital expenditures amounted to $449,000.
Compute the taxable income of this company
b) How much will the company pay in federal income tax for the year? Find the average tax rate for the company.
Statistics for Managers Using Microsoft Excel
ISBN: 978-0133130805
7th edition
Authors: David M. Levine, David F. Stephan, Kathryn A. Szabat