Below are some of the items in Leeds Corporation’s 2022 income statement. The federal income tax rate for the company was 21% while the state income tax is 0%. Assuming that there were no other operating expenses, calculate the firm’s taxable income in the year.
Gross sales: $1,230,560
Cost of goods sold: $720,560
Other operating expenses: $135,000
Depreciation expenses: $180,700
Interest expenses: $90,300
a. $21,840
b. $55,680
c. $92,110
d. $104,000
e. $125,000