The following summarizes information relating to Gonzalez Corporation's operations for the current year.
$\begin{array}{ll}
\text { Sales reventue } & 5,600,000 \\
\text { Dividend revenue (not taxable) } & 180,000 \\
\text { Operating expenses other than depreciation } & (4,000,000) \\
\text { Depreciation } & \underline{(500,000)} \\
\text { Income before tax } & \underline{1,280,000} \\
\text { Capital cost allowance claimed } & 800,000 \\
\text { Income tax rate } & 45 \%
\end{array}$ Requirement:
Compute the amount of taxes payable and income tax expense for Gonzalez Corporation.

Question

The following summarizes information relating to Gonzalez Corporation's operations for the current year.
 $\begin{array}{ll}
\text { Sales reventue } & 5,600,000 \\
\text { Dividend revenue (not taxable) } & 180,000 \\
\text { Operating expenses other than depreciation } & (4,000,000) \\
\text { Depreciation } & \underline{(500,000)} \\
\text { Income before tax } & \underline{1,280,000} \\
\text { Capital cost allowance claimed } & 800,000 \\
\text { Income tax rate } & 45 \%
\end{array}$ Requirement:
Compute the amount of taxes payable and income tax expense for Gonzalez Corporation.

Quizplus · Accepted Answer

The Answer of The following summarizes information relating to Gonzalez Corporation's operations for the current year.
 $\begin{array}{ll}
\text { Sales reventue } & 5,600,000 \\
\text { Dividend revenue (not taxable) } & 180,000 \\
\text { Operating expenses other than depreciation } & (4,000,000) \\
\text { Depreciation } & \underline{(500,000)} \\
\text { Income before tax } & \underline{1,280,000} \\
\text { Capital cost allowance claimed } & 800,000 \\
\text { Income tax rate } & 45 \%
\end{array}$ Requirement:
Compute the amount of taxes payable and income tax expense for Gonzalez Corporation.

The Following Summarizes Information Relating to Gonzalez Corporation's Operations for the Current