Question

tom owns a small landscaping company. last year, his company had the following financial details: income: residential services: $85,470 commercial services: $62,350 seasonal contracts: $22,180 expenses: salaries: $48,920 equipment maintenance: $15,340 supplies: $9,760 utilities: $6,980 the federal corporate tax rate is 21%. calculate the federal income tax tom’s landscaping company needs to pay for the year. (2 points) $ \square $ (your answer should be a whole number, do not use commas nor spaces between digits)

Explanation:

Step1: Calculate total income

To find the total income, we sum up the residential services, commercial services, and seasonal contracts incomes.
\[
85470 + 62350 + 22180 = 170000
\]

Step2: Calculate total expenses

To find the total expenses, we sum up the salaries, equipment maintenance, supplies, and utilities expenses.
\[
48920 + 15340 + 9760 + 6980 = 81000
\]

Step3: Calculate taxable income

Taxable income is total income minus total expenses.
\[
170000 - 81000 = 89000
\]

Step4: Calculate federal income tax

The federal corporate tax rate is 21%, so we multiply the taxable income by 0.21.
\[
89000 \times 0.21 = 18690
\]

Answer:

18690