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

David burdick is the ceo of acme bubblegum, a successful public company. as one of the cofounders of the company, burdick has enjoyed speaking and writing about the success of acme bubblegum for several years. typically, he speaks at conferences or directly to the press, but recently, he has been blogging about his firm anonymously. specifically, he defended a recent advertising campaign that was unpopular among consumers and pointedly attacked one of acme bubblegum’s competitors. burdick deeply enjoys his anonymous blogging and believes that none of his readers actually know that he works for acme bubblegum.should burdick be allowed to praise his company’s performance anonymously online? should he be allowed to attack his competitors without disclosing his relationship with the company? how would you feel if the ceo of a company at which you shopped was secretly writing criticisms of his or her competition? how would you feel if you knew a writer for your favorite blog was actually closely involved in a company that the blog discussed? 1. define the ethical issue? 2. who are the primary stakeholders? 3. what are the possible alternatives? 4. how could you evaluate the ethical implications of the alternative actions (use appropriate decision rules)? 5. what action would you recommend and why?