Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank

Exercise 7

Last year, Marylynn opened Baron's Appliance Sales and Service. Her tax accountant provided the year's results.
Gross income = $320,000
Business expenses = $149,000
MACRS depreciation = $95,000
Average federal tax rate = 18.5%
Average state tax rate = 6%
City and county flat tax rates combined = 4.5%
Determine the following for Marylynn.
a. Taxable income.
b. Exact amount of federal income taxes.
c. Estimate of percent of the GI needed to pay all income taxes-federal, state, city and county.