KARVA Corporation had a net income before taxes of $11,440,300. First find the tax liability using the Corporate Tax Rate Schedule, Exhibit 18-6 from your text, then calculate the net income after taxes.

Question

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To find the tax liability, apply the corporate tax rates to the income of $11,440,300. After calculating the taxes owed, subtract this amount from the net income before taxes to find the net income after taxes, which is $7,536,195.

KARVA Corporation Had a Net Income Before Taxes of $11,440,300