Wayne Corporation had income from operations of $385,000, it received interest payments of $15,000, it paid...

Wayne Corporation had income from operations of $385,000, it received interest payments of $15,000, it paid interest of $20,000, it received dividends from another corporation of $10,000, and it paid $40,000 in dividends to its common stockholders. What is Wayne’s federal income tax?

$141,700

$130,220

$122,760

$163,500

$155,200

Expert Solution

Taxable Income=Income from Operations+Interest Received-Interest Paid+30%*Dividend received from another corporation=385000+15000-20000+3000
=383000

Federal Income Tax=130220

jeff jeffy answered 2 years ago

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