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Question
Your corporation has the following cash flows:
Operating income $250,000
Interest received 10,000
Interest paid 45,000
Dividends received 20,000
Dividends paid 50,000
If the applicable income tax rate is 40 percent, and if 70 percent of dividends received are exempt from taxes, what is the corporation's tax liability?
a. $74,000
b. $88,400
c. $91,600
d. $100,000
e. $106,500
Answer
This answer is hidden. It contains 179 characters.
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