Bulldog corporation reported taxable income of $925,000 this year, before any deduction for any payment to its sole shareholder and employee, georgia brown. bulldog chose to pay a bonus of $153,000 to georgia at year-end. the bonus meets the requirements to be "reasonable" and is therefore deductible by bulldog. georgia is subject to a marginal tax rate of 35 percent on the bonus. what is the income tax imposed on the corporate income earned by bulldog and the income tax on the bonus paid to georgia

Explanation:

The computation is shown below:

Corporate tax = (Taxable income - bonus expenses) × corporate tax rate

= (925,000 - $153,000) × 21%

= $162,120

The corporate tax rate is 21% and we take the same for computation

Shareholder tax = Bonus expenses × marginal tax rate

=  $153,000 × 35%

= $53,550

So, the total income tax would be equal to

= $162,120 + $53,550

= $215,670

support your answer using the data presented. (5 points). 4. based on the information you used to schedule and curve, which product would you recommend the shoe hut focus on, and why? provide details that support your answer. (5 points).

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total