TNT Corporation's income tax payable is $240,000 and its tax rate is 30%. Assuming no book-tax differences, what is TNT's net income? (Round your answer to the nearest whole dollar.)

Question

Quizplus · Accepted Answer

To find the net income, first calculate the taxable income by dividing the income tax payable by the tax rate: $240,000 / 0.30 = $800,000. Then, subtract the income tax payable from the taxable income to find the net income: $800,000 - $240,000 = $560,000.

TNT Corporation's Income Tax Payable Is $240,000 and Its Tax