Corporate taxes Tantor Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods. During 2018 the firm earned $ 94 comma 800 before taxes. a. Calculate the firm's tax liability using a flat tax rate of 21 %. b. How much are Tantor Supply's 2018 after-tax earnings?

tax expense for the period: $19,908

net income or earning after taxes: $74,892

Explanation:

We will multiply the income before taxes by the tax-rate. The result of the multiplication will be the tax expense for company.

Then, we subtract this expense to obtain the after-tax earning or net income.

Let's begin:

pre-tax income x tax-rate

94,800 x 21% = 19,908 income tax expense

earnings before taxes - income tax expense

94,800 - 19,908 = 74,892 earnings after-tax