1. RedBall Productions is a new company based in Orem, Utah, where the state corporate income tax consists of a flat tax rate of 5 percent. RedBall Production's taxable income in 2005 was $500,000. Determine their corporate taxes by calculating 5 percent of RedBall's taxable income (multiply by 0.05). What amount of state income tax did RedBall Productions owe?

Question

Cherish Webb

Mathematics

6 May, 05:46

1. RedBall Productions is a new company based in Orem, Utah, where the state corporate income tax consists of a flat tax rate of 5 percent. RedBall Production's taxable income in 2005 was $500,000. Determine their corporate taxes by calculating 5 percent of RedBall's taxable income (multiply by 0.05). What amount of state income tax did RedBall Productions owe?

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Answers (1)

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Paloma Boone · Answer 1

Based on the given above, we can use the following:

Taxable income in 2005 = $500,000

Corporate income tax rate = 5%

To solve for the state income tax of RedBall Production, we can simply get the product:

$500,000 * 5% = $25,000