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

find the taxable income. carefully bcz its my account assignment question.
Assume B Corporation has $450,000 of Ordinary income from its operations and $10,000 of interest received from its investments in bonds from Z firm. Also, it received $20,000 in dividends from an investment in stocks on Y Corporation, having ownership of 18% of that firm. Find any deductions from the information provided above.(10)(Account)
General accounting
None
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?
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
Valiant Corp is a C corporation that earned $5.2 per share before it paid any taxes. Valiant Corp. retained $1 of after-tax earnings for reinvestment and distributed what remained in dividend payments. Assume that the corporate tax rate was 32% and dividend earnings were taxed at 12.2%. The value of the dividend earnings received after- tax by a holder of 99,960 shares of Valiant Corp. is $_______.(round your answer to two decimal places) Answer: 222 571.74
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?

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