Computing income taxes

the william b. waugh corporation is a regional toyota dealer. the firm sells new and used trucks and is actively involved in the parts business. during the most recent year, the company generated sales of 3.13 million . the combined cost of goods sold and the operating expenses were $2.08 million . also, 377,000

in interest expense was paid during the year. calculate thecorporation's tax liability by using the corporate tax rate structure in the popup window,

corporate tax rates

15%

$0long dash—$50,000

25%

$50,001long dash—$75,000

34%

$75,001long dash—$10,000,000

35%

over $10,000,000

  additional surtax:

   5% on income between $100,000 and$335,000
3% on income between $15,000,000 and $18,333,333
.

the corporation's tax liability is