Heinfell Inc. reported sales of $ 850,000, cost of goods sold of $ 510,000, and other expenses totalled $ 180,000. If the company's corporate tax rate is determined to be 26%, how much would Heinfell report as income tax expense in the year?

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Quizplus · Accepted Answer

To calculate the income tax expense, first determine the taxable income: Sales ($850,000) - Cost of Goods Sold ($510,000) - Other Expenses ($180,000) = $160,000. Then, apply the tax rate: $160,000 * 26% = $41,600.