Question
In: Finance
If the applicable tax rate is 28% (federal and state combined), and if 70% of dividends received are exempt from taxes, what is the corporation's tax liability?
The Main Street Pub & Grill has the following cash
flows:
Operating income:
$300,000
Interest received:
$20,000
Interest
paid:
$65,000
Dividends
received: $40,000
Dividends
paid:
$50,000
If the applicable tax rate is 28% (federal and state combined), and
if 70% of dividends received are exempt from taxes, what is the
corporation's tax liability?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
If the applicable income tax rate is 40% (federal and state combined), and if 70% of dividends received are exempt from taxes, what is the corporation's tax liability?
Your corporation has the following cash flows:Operating income$250,000Interest received$10,000Interest paid$45,000Dividends received$24,000Dividends paid$50,000If the applicable income tax rate is 40% (federal and state
combined), and if 70% of dividends received are exempt from taxes,
what is the corporation's tax liability?a. $84,436b. $85,325c. $88,880d. $73,770e. $94,213
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