Answered: "Your company will generate $470,000 in…

"Your company will generate $470,000 in taxable income for 2020. Assume that your state tax rate is 7% and your federal tax rate is 21%. How much federal tax do you owe?"

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 6Q: What amount is payable to a state tax board if the original sales price is $3,000, and the tax rate...

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

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"Your company will generate $470,000 in taxable income for 2020. Assume that your state
tax rate is 7% and your federal tax rate is 21%.
How much federal tax do you owe?"

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