Income Taxes
Taxable income and income taxes
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Taxable Income
can be expressed as
TI = Σ R - Σ C - Σ D - Σ OE (1)
where
TI = taxable income
R = revenues
C = costs of projects or goods sold
D = assets depreciation
OE = operating expenses
Income Taxes
can be calculated as
IT = TI tr (2)
where
IT = income taxes
tr = tax rate
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