Determine the firms tax liability

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Provide a detailed explanation please

Last year, California Sushi and Such (CSS) had sales of $65 million. The firm's operating expenses amounted to $20 million and costs of goods sold totaled $15 million. In addition, CSS received $80,000 in dividend income, and paid $300,000 in dividends to its stockholders.

CSS has $25 million in bonds outstanding with an annual interest payment of 9%.

The firm also had $6 million in depreciation expense, and sold land for $3.5 million that had been purchased for $2.5 million several years earlier. What is the firm's tax liability?

Reference no: EM131967838

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