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 | 150 | 90 |\n| cogs | (42) | (30) |\n| gross profit | 108 | 60 |\n| overhead | (50) | (40) |\n| pre - tax income | 58 | 20 |\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 | 150 | 90 |\n| cogs | (42) | (30) |\n| gross profit | 108 | 60 |\n| overhead | (50) | (40) |\n| pre - tax income | 58 | 20 |\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 20 (in thousands).

Step2: Calculate corporate income tax rate

The tax rate is 21% or 0.21.

Step3: Calculate corporate income tax amount

$20\times0.21 = 4.2$ (in thousands).

Step4: Convert to dollars

$4.2\times1000=4200$.

Answer:

4200