The Following Summarizes Information Relating to Gonzalez Corporation's Operations for the Current

question 15

Essay

The following summarizes information relating to Gonzalez Corporation's operations for the current year.
$\begin{array}{ll}\text { Sales reventue } & 5,600,000 \\\\\text { Dividend revenue (not taxable) } & 180,000 \\\\\text { Operating expenses other than depreciation } & (4,000,000) \\\\\text { Depreciation } & \underline{(500,000)} \\\\\text { Income before tax } & \underline{1,280,000} \\\\\text { Capital cost allowance claimed } & 800,000 \\\\\text { Income tax rate } & 45 \%\end{array}$ Requirement:
Compute the amount of taxes payable and income tax expense for Gonzalez Corporation.

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Definitions:

Market Price

The rate at which an asset or service is currently trading in the market.

Shares Outstanding

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Market Price

The market rate at which an asset or service can currently be sold or bought.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares.