Southlawn Inc.'s taxable income is computed as follows. Using a 34% rate, compute Southlawn's tax expense per books and tax payable.

Question

Southlawn Inc.'s taxable income is computed as follows.  Using a 34% rate, compute Southlawn's tax expense per books and tax payable.

Quizplus · Accepted Answer

To calculate Southlawn's tax expense per books, we multiply its taxable income by the tax rate: $1,893,012 x 0.34 = $643,824. To calculate Southlawn's tax payable, we use the same formula but subtract any tax credits or payments already made: $1,893,012 x 0.34 - $64,260 = $579,564. Therefore, the correct answer is A.