CFA Practice Question
The firm Fluid Mechanics has a Net Income of $70,000 for 2011. Its revenues total $300,000. Its expenses are solely wages, raw materials and taxes. Wages are $100,000 and raw materials $80,000. What taxes did it pay in 2011?
A. 30,000
B. 40,000
C. 50,000
Explanation: Income Before Taxes = $300,000 - $100,000 - $80,000 = $120,000
Net Income = Income Before Taxes - Taxes
Taxes = $120,000 - $70,000 = $50,000
Net Income = Income Before Taxes - Taxes
Taxes = $120,000 - $70,000 = $50,000
User Contributed Comments 0
You need to log in first to add your comment.