Griffey Communications recently realized $112,500 in operating income. The company had interest income of $30,000 and realized $70,000 in dividend income. The company's inte $55,000. Its corporate tax rate is 25%. Griffey is a small company, so it is not subject to the interest expense deduction limitation. Assume a 50% dividend exclusion for taxes on dividends. Which of the following most closely matches the tax liability of Griffey Communications? O a. $21,875 O b. $39,375 O c. $44.375 O d. $53.125 Oe. $30.625

Griffey Communications recently realized $112,500 in operating income. The company had interest income of $30,000 and realized $70,000 in dividend income. The company's inte $55,000. Its corporate tax rate is 25%. Griffey is a small company, so it is not subject to the interest expense deduction limitation. Assume a 50% dividend exclusion for taxes on dividends. Which of the following most closely matches the tax liability of Griffey Communications? O a. $21,875 O b. $39,375 O c. $44.375 O d. $53.125 Oe. $30.625

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section2.A: Taxes

Problem 2P

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