1. RedBall Productions is a new company based in Orem, Utah, where the state corporate income tax consists of a flat tax rate of

Question

2 years ago

13

1. RedBall Productions is a new company based in Orem, Utah, where the state corporate income tax consists of a flat tax rate of

5 percent. RedBall Production's taxable income in 2005 was $500,000. Determine their corporate taxes by calculating 5 percent of RedBall’s taxable income (multiply by 0.05). What amount of state income tax did RedBall Productions owe?

Mathematics

1 answer:

Helen [10] · Answer 1 · 2023-07-24T22:30:05+03:00

Helen [10]2 years ago

8 0

Based on the given above, we can use the following:

Taxable income in 2005 = $500,000

Corporate income tax rate = 5%

To solve for the state income tax of RedBall Production, we can simply get the product:

$500,000 * 5% = $25,000