calculate the corporate income tax for quarter 2. use a corporate income tax rate of 21%.\nincome…

calculate the corporate income tax for quarter 2. use a corporate income tax rate of 21%.\nincome statement\n| |q1 (x1000)|q2 (x1000)|\n|--|--|--|\n|net sales|110|170|\n|cogs|(18)|(32)|\n|gross profit|92|138|\n|overhead|(30)|(50)|\n|pre - tax income|62|88|\ncorporate income tax = $?\nmultiply the product by 1000 to answer in dollars.

calculate the corporate income tax for quarter 2. use a corporate income tax rate of 21%.\nincome statement\n| |q1 (x1000)|q2 (x1000)|\n|--|--|--|\n|net sales|110|170|\n|cogs|(18)|(32)|\n|gross profit|92|138|\n|overhead|(30)|(50)|\n|pre - tax income|62|88|\ncorporate income tax = $?\nmultiply the product by 1000 to answer in dollars.

Answer

Explanation:

Step1: Identify pre - tax income for Q2

Pre - tax income for Q2 is 88 (in thousands).

Step2: Calculate corporate income tax amount

Corporate income tax rate is 21% or 0.21. Tax amount = Pre - tax income×Tax rate. So, tax amount = 88×0.21. $88\times0.21 = 18.48$ (in thousands)

Step3: Convert to dollars

Multiply by 1000. $18.48\times1000=18480$

Answer:

18480