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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 70 percent of dividends received are excludable, and if the applicable tax table is as follows,
Taxable Income Rate
$0 −$50,000 15%
50,000 − 75,000 25
75,000 −100,000 34
100,000 −335,000 39
over $335,000 34
What is the corporation's tax liability?
a. $57,530
b. $65,350
c. $69,440
d. $88,350
e. $100,280
Answer
This answer is hidden. It contains 386 characters.
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