Question

RedBall Productions is a new company based in Orem, Utah. RedBall supplies stock images of still photography. Utah's state corporate income tax consists of a flat tax rate of 5% on all corporate income. RedBall Production's taxable income in 2005 was $500,000. What amount of state income tax did RedBall Productions owe?

Answer 1

0.05 * 500,000 = ?

Answer 2

25000

Answer 3

[AI-generated answer — Explain Bot]

To calculate the amount of state income tax owed by RedBall Productions, we need to multiply their taxable income by the flat tax rate of 5%.

To do this, we can use the following formula:

State income tax owed = Taxable income * Flat tax rate

In this case, RedBall Productions' taxable income is $500,000 and the flat tax rate for Utah's state corporate income tax is 5%.

So, the calculation would be:

State income tax owed = $500,000 * 5% = $25,000

Therefore, RedBall Productions owes $25,000 in state income tax for the year 2005.