Sunny Vale Co. reported the following for the current tax year: Compute Sunny Vale's total income tax liability.

Question

Sunny Vale Co. reported the following for the current tax year:  Compute Sunny Vale's total income tax liability.

Quizplus · Accepted Answer

To find Sunny Vale's total income tax liability, we need to add up the federal income tax and state income tax.

Federal income tax = $52,000 x 35% = $18,200 
State income tax = $100,000 x 6% = $6,000

Total income tax liability = $18,200 + $6,000 = $24,200

Therefore, the best choice is C.