This year,Sutton Corporation's before-tax income was $2,000,000.It paid $175,000 income tax to Nebraska and $300,000 income tax to Iowa.Compute Sutton's federal income tax.

Name: This year,Sutton Corporation's before-tax income was $2,000,000.It paid $175,000 income tax to Nebraska and $300,000 income tax to Iowa.Compute Sutton's federal income tax.
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Federal income tax = Before-tax income - State income taxes= $2,000,000 - $175,000 - $300,000= $1,525,000Federal income tax = $1,525,000 x 34%= $518,500

This Year,Sutton Corporation's Before-Tax Income Was $2,000,000