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What is the formula for determining income tax expense?

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Income tax expense = Gross profit / Tax rate
Income tax expense = Gross profit x Tax rate
Income tax expense = Gross profit + Tax rate
Income tax expense = Gross profit - Tax rate

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Answered by GPT-5 mini AI
Income tax expense = Gross profit × Tax rate

(Strictly speaking, income tax expense = taxable income × tax rate — you must first adjust gross profit for operating expenses, deductions, etc., to get taxable income.)