Answer:
$30,000
Explanation:
Given that
Taxable Revenue = $190,000
Tax Expenses = $40,000
Tax rate = 20%
The computation of income tax payable is shown below:-
Profit = Taxable Revenue - Tax Expenses
= $190,000 - $40,000
= $150,000
Income tax payable = Profit × Tax rate
$150,000 × 20%
= $30,000
Therefore, for calculating the income tax payable we simply multiply the profit with tax rate.
