The William B. Waugh Corporation is a regional Toyota dealer. The firm sells new and used trucks and is actively involved in the parts business. During the most recent year, the company generated sales of $ 3.08 million. The combined cost of goods sold and the operating expenses were $2.03 million. Also, $394000 in interest expense was paid during the year. Calculate the corporation's tax liability by using the corporate tax rate structure in the popup window,
Corporate Tax Rates
15% $0—$50,000
25% $50,001—$75,000
34% $75,001—$10,000,000
35% over $10,000,000
Additional surtax:
5% on income between $100,000 and $335,000
3% on income between $15,000,000 and $18,333,333