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% (federal and state combined), and if 70% of dividends received are exempt from taxes, what is the corporation's tax liability? * $ 92,820 O $102,334 $ 88,400 O $ 83,980 O $97,461

Compute the taxable income & Earnings and profit for a corporation receipts from services receipts from services   75,000       dividend income   5000       interest from municipal bonds   2,000       additional capital from shareholders   10,000                   wages & rent     30,000     fines     2,000     section 179 exp     20,000     estimated fed tav pd     5,000

8. What is the after-tax return to a corporation that buys a share of preferred stock at $45, sells it at year-end at $45, and receives a $5 year-end dividend? The firm is in the 20% tax bracket. Revenue = $5 For a company, taxable = $5 * 30% = $1.5 Tax = $1.5* 20% = $0.3 After tax income = $5 - $0.3= $4.7 Return $4.7/$45= 10.44%

Given an asset with a net book value (NBV) of $35,000. a. What are the after-tax proceeds for a firm in the 33% tax bracket if this asset is sold for $47,000 cash? After-tax proceeds $ 43,040 b. What are the after-tax proceeds for this same firm if the asset is sold for $21,000 cash? After-tax proceeds

A company recently reported $9.8 million of net income. Its EBIT was $15 million, and its federal tax rate was 22%(ignore any possible state corporate taxes).What was its EBT? Blank 1What was its Tax liability? Blank 2What was its interest expense? Blank 3

The tax bracket and holdings of your client are as follows: Federal tax bracket = 33%   Investment Annual Income June 30, Last Year's Purchase Price June 30, This Year's Market Price Money fund $6,500 $100,000 $100,000 11% T bonds $11,000 $100,000 $140,000 S&P 500 Index Fund $6,000 $100,000 $160,000 Computer stock fund $3,000 $100,000 $85,000 *There have been no capital gain distributions.   During the 12 months from June 30 last year, through June 30 this year, the portfolio earned in annual yield and before-tax appreciation, respectively:   5.5% yield and 17.5% appreciation 5.5% yield and 21.3% appreciation 6.6% yield and 17.5% appreciation 6.6% yield and 21.3% appreciation

Problem: Happy realized income of P97.000 before interest and income taxes, with Assets of ..P517.000 Liabilities 220,000 SE 297,000 os Income Tax Rate 32% he corporation want to have additional capital of P300.000 in order to add its operating incom y P150.000. Two options are presented: 1) Obtain P300.000 loan having interest of 30%. 2) Additional of 1270 shares of capital stocks with market price of P 1200 10,000 (Par value P100) Compute: both options 1) Net Income 2) Earnings per share 3) Rate of return on Owner's Equity 4) Which option is advantageous to Happy Corporation?

1 Calculate the Tax implications if the company has earnings before taxes of $ 350,000.00 Both if the company is a Corporation or Sole proprietorship What is the total taxes, average rate and the marginal tax rate Corporate Tax Rate: Total Taxes as Coorporation Personal Marginal Income Tax Rates: Single: Taxable Income Over--- 0 9,525 38,700 82,500 157,500 200,000 500,000 Total Tax Paid Marginal Tax Rate Average Tax Rate Taxable Income 350000 But not over Over--- 0 9,525 38,700 82,500 157,500 200,000 500,000 === 9,525 38,700 82,500 157,500 200,000 500,000 But not over --- 9,525 38,700 82,500 157,500 200,000 500,000 Marginal Tax Rate 10% 12% 22% 24% 32% 35% 37% Marginal Tax Rate 10% 12% 22% 24% 32% 35% 37% 21% Difference Incremental Taxes Cumulative Taxes

XYZ Corporation, a calendar year C Corporation, has $100,000 gross business receipts, $5,000 interest income from corporate bonds, $20,000 qualified dividend income from a 5% owned C Corporation, $110,000 business expenses, and $2,000 charitable contribution. How much is XYZ's taxable income (or net operating loss) for the current year?\\n\\nGroup of answer choices\\n\\n$0 Taxable income.\\n\\n$3,000 Taxable income.\\n\\n$6,500 Taxable income.\\n\\n$6,750 Taxable income.

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