JKJ Manufacturing Inc

Multiple Choice

JKJ Manufacturing Inc.'s Income Statement for the year reported Sales Revenue of $44,350,000. Cost of Goods Sold was 35% of Sales Revenue. Sales, Administration and Distribution expenses were $19,750,000. Interest charges amounted to $1,200,000. There were no differences between accounting income and taxable income. If the federal tax rate is 20.5% and the provincial rate is 16%, what is JKJ Manufacturing Inc.'s taxes payable?

A) $2,875,287.50
B) $6,027,975
C) $1,614,887.50
D) $1,260,400
E) $3,313,287.50