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in this lesson weamp;#39;re going to talk about how to calculate federal income tax and complete an eight column worksheet for a merchandise business before we get going itamp;#39;s important to know a couple things first of all all individuals are subject to paying federal income taxes unlike a proprietorship a corporation is a legal entity having most of the rights and obligations of an individual thus the corporation is the only form of a business organization that must pay federal income taxes corporations anticipating federal income taxes of $500 or more are required to pay their taxes each quarter so that would be four times a year that would be in April June September and December another thing important with taxes is each tax payment that weamp;#39;re gonna have is recorded as a debit to federal income tax expense and of course a credit to cash federal income tax is an expense of a corporation however the amount of the tax depends on net income before the tax record and that
