Q:

How do you calculate pre-tax income?

A:

Quick Answer

To calculate pre-tax income, use the following formula: pre-tax operating income = gross revenue - operating expenses - depreciation. The pre-tax operating income is the operating income of a company before taxes. Simply put, a company can find its pre-tax income by subtracting its total expenses from the total revenue.

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Full Answer

Pre-tax operating income is a means to measure the efficiency of a business. It considers the expenses to operate a company, which directly coincide to the ongoing operations of the company. Pre-tax income is important because it helps to identify the success or failure of the business itself and can pinpoint what needs to change or what should stay the same to maintain a profit.

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    What information is needed to calculate income tax?

    A:

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    How do you calculate federal income tax exemptions?

    A:

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    How do you use an income tax refund calculator?

    A:

    Users enter information into a tax refund calculator about family status, income, expenses and taxes paid to determine the amount of their tax refunds, according to H&R Block. The calculator then determines the amount of taxes that they owe or were overpaid. A similar tax calculator is available at TaxAct.com.

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