To calculate the corporate income tax for Quarter 1 given a corporate income tax rate of 21%, follow these steps:
1. Identify the pre-tax income for Quarter 1:
From the table, the pre-tax income for Q1 is 50 (in thousands).
2. Convert the pre-tax income to actual amount:
Since the pre-tax income is given in thousands, convert it to actual amount by multiplying by 1000.
[tex]\[
\text{Pre-tax Income}_{Q1} = 50 \times 1000 = 50,000 \text{ dollars}
\][/tex]
3. Determine the corporate income tax rate:
The tax rate is given as 21%, which can be represented as a decimal for calculations.
[tex]\[
\text{Tax Rate} = 21\% = 0.21
\][/tex]
4. Calculate the corporate income tax for Quarter 1:
Multiply the pre-tax income by the tax rate to find the corporate income tax.
[tex]\[
\text{Corporate Income Tax}_{Q1} = \text{Pre-tax Income}_{Q1} \times \text{Tax Rate}
\][/tex]
[tex]\[
\text{Corporate Income Tax}_{Q1} = 50,000 \times 0.21 = 10,500 \text{ dollars}
\][/tex]
So, the corporate income tax for Quarter 1 is $10,500.
