What is the calculation method for net income after taxes?

Net income after taxes is determined by taking total revenue and subtracting normal operating expenses and the amount of taxes owed on taxable income.

When calculating taxes, it is crucial to multiply the taxable income by the applicable tax rate. By taking the taxable income and applying the tax rate, you can accurately compute the total tax expense, which represents the portion of income that will be paid in taxes. This amount is then subtracted from the revenue after normal expenses have been accounted for to find the net income.

For instance, if a company has a revenue of $1,000,000, normal expenses of $600,000, and taxable income of $300,000 with a tax rate of 30%, the calculation for taxes would be $300,000 * 0.30 = $90,000. The final calculation for net income would then be $1,000,000 - $600,000 - $90,000, leading to a net income of $310,000. This method accurately reflects the company's profitability after accounting for all necessary expenses and tax obligations.

The other options fail to correctly represent the relationship between revenue, expenses, and tax calculations, leading to inaccurate figures for net income.