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john's, incorporated manufactures and sells fine furniture. what is john's regular tax liability if it had taxable income of $40,000,000 for its fiscal year ended september 30, 2018?

Answer :

ayune

With corporate tax rate of 21%, if his taxable income is $40,000,000, then his tax liability  is $8,400,000

Taxable income includes:

- unearned income

- earned income

Examples of the unearned incomes:

- canceled debts

- government benefits (e.g. unemployment and disability payments)

- strike benefits

- lottery winnings.

Examples of the earned incomes:

- revenues from sales

- sold valued assets

- dividend

- interest income

Since 2017, the corporate tax rate of US is set flat to 21%

Tax liability = tax rate x taxable income

Tax liability = 21% x $40,000,000

                   = $8,400,000

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