Dollar amount of taxes paid

Question

Problem:

Elgin battery manufacturers had sales of $900,000 in 2012 and their cost of goods sold represented 65% of sales. Selling and administrative expnese were 9% of sales. Depreciation expenses was $10,000 and interest expense for the year was $8,000. The firm's tax rate is 34%.

Required:

Question: What is the dollar amount of taxes paid?

• 151,200
• 64,800
• 73440

Note: Explain all calculation and formulas.