Question

In: Accounting

The Talley Corporation had taxable operating income of $395,000 (i.e., earnings from operating revenues minus all...

The Talley Corporation had taxable operating income of $395,000 (i.e., earnings from operating revenues minus all operating costs). Talley also had (1) interest charges of $40,000, (2) dividends received of $10,000, and (3) dividends paid of $20,000. Its federal tax rate was 21% (ignore any possible state corporate taxes).

Recall that 50% of dividends received are tax exempt. What is the firm’s taxable income? Round your answer to the nearest dollar. $

What is the tax expense? Round your answers to the nearest dollar. $

What is the after-tax income? Round your answers to the nearest dollar.

Solutions

Expert Solution

Income after operating costs: 395000
Less: Interest Expense 40000
Plus: Taxable Dividends Received Only 50% of the $10000 in dividends are taxable 5000
Taxable Income: $360000
Tax expense (21%*360000) 75600
After tax income (395000-40000+10000-75600) $289400

Related Solutions

The Talley Corporation had taxable operating income of $490,000 (i.e., earnings from operating revenues minus all...
The Talley Corporation had taxable operating income of $490,000 (i.e., earnings from operating revenues minus all operating costs). Talley also had (1) interest charges of $70,000, (2) dividends received of $25,000, and (3) dividends paid of $40,000. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall that 50% of dividends received are tax exempt. What is the after-tax income? Round your answers to the nearest dollar.
The Talley Corporation had taxable operating income of $500,000 (i.e., earnings from operating revenues minus all...
The Talley Corporation had taxable operating income of $500,000 (i.e., earnings from operating revenues minus all operating costs). Talley also had (1) interest charges of $60,000, (2) dividends received of $20,000, and (3) dividends paid of $25,000. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall that 50% of dividends received are tax exempt. What is the firm’s taxable income? Round your answer to the nearest dollar. $ What is the tax expense? Round your answers...
The Talley Corporation had taxable operating income of $385,000 (i.e., earnings from operating revenues minus all operating costs).
Corporate Tax LiabilityThe Talley Corporation had taxable operating income of $385,000 (i.e., earnings from operating revenues minus all operating costs). Talley also had (1) interest charges of $60,000, (2) dividends received of $25,000, and (3) dividends paid of $40,000. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall that 50% of dividends received are tax exempt.What is the firm’s taxable income? Round your answer to the nearest dollar.$  What is the tax expense? Round your answers to...
Corporate Tax Liability The Talley Corporation had taxable operating income of $435,000 (i.e., earnings from operating...
Corporate Tax Liability The Talley Corporation had taxable operating income of $435,000 (i.e., earnings from operating revenues minus all operating costs). Talley also had (1) interest charges of $40,000, (2) dividends received of $25,000, and (3) dividends paid of $35,000. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall that 50% of dividends received are tax exempt. What is the firm’s taxable income? Round your answer to the nearest dollar. $ 407,500 What is the tax...
The Talley Corporation had a taxable income of $300,000 from operations after all operating costs but...
The Talley Corporation had a taxable income of $300,000 from operations after all operating costs but before (1) interest charges of $30,000, (2) dividends received of $15,000, (3) dividends paid of $24,000, and (4) income taxes. What are the firm's income tax liability and its after-tax income? Round your answers to two decimal places. Income tax liability $   After-tax income $   What are the company's marginal and average tax rates on taxable income? Round your answers to two decimal places....
The Talley Corporation had a taxable income of $335,000 from operations after all operating costs but before (1) interest charges of $67,000
The Talley Corporation had a taxable income of $335,000 from operations after all operating costs but before (1) interest charges of $67,000, (2) dividends received of $16,750, (3) dividends paid of $20,100, and (4) income taxes.What are the firm's income tax liability and its after-tax income? Round your answers to two decimal places.Income tax liability$  After-tax income$  What are the company's marginal and average tax rates on taxable income? Round your answers to two decimal places.Marginal tax rate39%Average tax rate%
The Dakota Corporation had a 2015 taxable income of $27,500,000 from operations after all operating costs...
The Dakota Corporation had a 2015 taxable income of $27,500,000 from operations after all operating costs but before (1) interest charges of $8,000,000; (2) dividends received of $700,000; (3) dividends paid of $5,000,000; and (4) income taxes. a. Use the tax schedule in Table 2.3 to calculate Dakota’s income tax liability. (Round your answer to the nearest dollar amount.)   Income tax liability $    b. What are Dakota’s average and marginal tax rates on taxable income? (Round your answers to the...
The Dakota Corporation had a 2015 taxable income of $17,000,000 from operations after all operating costs...
The Dakota Corporation had a 2015 taxable income of $17,000,000 from operations after all operating costs but before (1) interest charges of $3,500,000, (2) dividends received of $290,000, (3) dividends paid of $2,050,000, and (4) income taxes. a. Use the tax schedule in Table 2.3 to calculate Dakota’s income tax liability. (Round your answer to the nearest dollar amount.)
1.In the current year, Apricot Corporation had taxable income of $120,000. Included in taxable income was...
1.In the current year, Apricot Corporation had taxable income of $120,000. Included in taxable income was a $10,000 capital gain. The $120,000 of taxable income does not include a $15,000 capital loss carryforward available from the previous year. What is Apricot Corporation's current year income tax liability before any tax credits? Group of answer choices $22.050 $21,000 $23,100 $25,200 None of these 2. An S corporation files a Form 1120S. Group of answer choices True False
A corporation has operating income of $75,000. What is its taxable income if it receives a...
A corporation has operating income of $75,000. What is its taxable income if it receives a $20,000 dividend from another corporation in which it has the following ownership? a. 10% is: b. 65% is: c. 90% is:  
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT