Oakdale Fashions, Inc.’s, 2021 income statement is reported below. (Use corporate tax rate of 21 percent for your calculations.) Oakdale Fashions, Inc., Income Statement for 2021Net sales (all credit)$580,000 Less: Cost of goods sold 221,000 Gross profits$359,000 Less: Other operating expenses 96,000 EBITDA$263,000 Less: Depreciation and amortization 15,600 EBIT$247,400 Less: Interest 81,500 EBT$165,900 Less: Taxes Net income$ Determine the firm's 2021 tax liability. Tax liability

Calculate the tax liability for 2021:The tax liability for 2021 is $34,839.

Answered: Oakdale Fashions, Inc.’s, 2021 income…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 5P: Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of...

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Oakdale Fashions, Inc.’s, 2021 income statement is reported below. (Use corporate tax rate of 21 percent for your calculations.)

Oakdale Fashions, Inc., Income Statement for 2021
Net sales (all credit)	$	580,000
Less: Cost of goods sold		221,000
Gross profits	$	359,000
Less: Other operating expenses		96,000
EBITDA	$	263,000
Less: Depreciation and amortization		15,600
EBIT	$	247,400
Less: Interest		81,500
EBT	$	165,900
Less: Taxes
Net income	$

Determine the firm's 2021 tax liability.

Tax liability

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