how is income tax expense calculated? take net income and divide it by revenue take pretax income and…
how is income tax expense calculated? take net income and divide it by revenue take pretax income and multiply it by the tax rate take retained earnings and subtract dividends
Answer
Brief Explanations:
Income tax expense is calculated by taking pretax income and multiplying it by the tax rate. Net income divided by revenue gives a different ratio (net profit margin), and retained earnings minus dividends is related to retained earnings calculation, not income tax expense.
Answer:
take pretax income and multiply it by the tax rate