A construction company's revenue is $2,500,000 for the year 2018. Direct costs of construction equals 1,650,000. The total general overhead of the company for the year is $106,000 that includes the
following expense accounts along with many other:
Company purchased water treatment plant for $38,000. The allowed deprecation for the plant is $13,000.
The company spent $7,500 on Meals and Entertainment during the year.
The company spent $4,000 in office supplies for which the allowed depreciation is $2,225.
The company spent $10,500 in advertising and marketing and took the depreciation of $1,576
The company spent $3,500 on office utilities for which the allowed depreciation is $1,125.
The company spent $5,000 on professional dues and memberships for which the allowed depreciation is $2,115
The company purchased office furniture for $12,000. The allowed deprecation for the furniture is $8,000.
The company purchased office laptop and software for $25,000. The allowed deprecation for the laptop is $4,800.
The company had bad debt equaling $1,500 for which the allowed depreciation is $600.
Allowed depreciation on past assets for the year is $8,035.
The company's tax rate for the year is 16%. The company also receives $25,000 in dividends and $1,200 in savings interest and pays $2,500 in interest. Determine the following for this company:
a) Gross Profit from the construction business
b) Net Profit before taxes from the construction business
c) Marginal (total net) taxable income
d) Net profit after taxes for the company
