Question

Corporate taxes Tantor​ Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods. During 2018 the firm earned $ 90 comma 300 before taxes. a. Calculate the​ firm's tax liability using a flat tax rate of 23​%. b. How much are Tantor​ Supply's 2018 ​after-tax earnings?

Answer 1

Answer:

$ 20,769.00  

$ 69,531.00  

Explanation:

Tantor Supply Inc's tax liability is the amount of tax payable to the government on its earnings before taxes of the year 2018

tax liability=tax rate*earnings before taxes

tax rate is 23%

earnings before taxes is $90,300

tax liability=$90,300*23%=$20,769.00  

Tantor's  supply's 2018  after-tax earnings=earnings before taxes-tax liability

Tantor supply's 2018  after-tax earnings=$90,300.00-$20,769.00=

$ 69,531.00