find the tax liability Assume B Corporation has $450,000 of Ordinary income fromits operations and $10,000 of interest received from itsinvestments in bonds from Z firm. Also, it received $20,000 individends from an investment in stocks on Y Corporation,having ownership of 18% of that firm.Find the tax liability.[Account]

Given Information:Ordinary income: $450,000Interest received from bonds from Z firm:…

Answered: Assume B Corporation has $450,000 of…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 10MC

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Similar questions

Company Z has $105,000 of taxable income from its operations, $7,000 of interest income, and $24,000 of dividend income from preferred stock it holds in other corporations. Its corporate tax r is 25%. What is Company Z's tax liability? Assume a 50% dividend exclusion for taxes on dividends. Oa. $26,250 O b. $31,000 c. $34,000 d. $32,250 e. $28,000
X Corp has $500 of book income. Included in the book income is $10 of dividends from a 10%-owned corporation and $20 of tax-exempt interest. What is the tax income reconciled to on Schedule M-1?
Please provide correct answer this financial accounting question
For the year just ended, ThruCast Corp. had pretax earnings from operations of $1.25 million. In addition, it received $110,000 in interest income from bonds it held in XrayTech and it received $65,000 in dividend income from its 8% common stock holding in Books-R-Us Corp. What is the total tax liability for ThruCast Corp. for the year? $299,114 $239,400 $292,425 $262,500
The Wendt Corporation had $10.5 million of taxable income.a. What is the company’s federal income tax bill for the year?b. Assume the firm receives an additional $1 million of interest incomefrom some bonds it owns. What is the additional tax on this interestincome?c. Now assume that Wendt does not receive the interest income but doesreceive an additional $1 million as dividends on some stock it owns.What is the additional tax on this dividend income?
?
The following information available from Petra+ Corporation: ROA Tax rate Total assets (include only $2 million financed by debts(12%) and $4 million owners' equity Management of Petra Co. wants to expand its operations with additional $4 million. It has two alt- First alternative: issue $2 million bonds (12 %) and the others by issue ordinary shares. . Second alternative: issue $4 million bonds (12%). Assume ROA remains unchanged. Then answer the following question (1-3): 1. ROCE before expansion, is: 2. ROCE if use fist alternative, is: 3. ROCE if use second alternative, is: O 9% 30% $6 millions O
Assume that a corporation has $100,000 of taxable income from operations plus $5,000 of interest income and $10,000 of dividend income. What is the company’s federal tax liability?
INCOME?
20) A C corporation earns $8.30 per share before taxes and the company pays a dividend of $2.00 per share. The corporate tax rate is 39%, the personal tax rate on dividends is 18%, and the personal tax rate on non-dividend income is 36%. What is the after-tax amount an individual would receive from the dividend? A) $1.49 B) $1.28 C) $1.22 D) $1,64
6. Assad Corporation repurchases 10,000 of its shares for $12 per share. The shares were originally issued at an average price of $10 per share. How much gain or loss should Assad report on its statement of comprehensive income as a result of this transaction? a.$0 b.$20,000 loss c.$100,000 gain d.$20,000 loss and $100,000 gain
Haricot Corporation and Pinto Corporation both have operating profits of $195 million. Haricot is financed solely by equity, while Pinto has issued $245 million of 6% debt. If the corporate tax rate is 21%: Required: a. How much tax does each company pay? b. What is the total payout to investors (debtholders plus shareholders) of each company? Complete this question by entering your answers in the tabs below. Required A Required B How much tax does each company pay? Note: Enter your answer in dollars not in millions. Tax Amount Haricot Pinto

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