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Question
Vroom Vroom Motors has the following income statement information.| Revenue | $52 000 |
| Cost of Goods Sold | $ 9 600 |
| Wages | $16 000 |
| Supplies | $ 7 500 |
| Insurance Expense | $ 400 |
| Depreciation Expense | $ 2 000 |
| Interest Expense | $ 7 330 |
Vroom Vroom Motors is in the 40% tax bracket and has preferred stock dividends due of $3,000 and 15,000 common stock shares outstanding. Based on this information, what is Vroom Vroom Motors' tax liability?
a. $5,775 c. $7,257
b. $3,668 d. $2,150
Answer
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