Problem
The Red Ranger Company recorded revenues of $45,000 and recaptured depreciation of $1200 for the year just ended. During the year, it incurred cash expenses of $23,500 and depreciation expenses of $11,575. It also sold real estate for a profit (income, not capital gain) of $40,000. Determine the federal taxes owed by Red Ranger.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.