Pearls, Inc. had sales in 2015 of $2.1 million. The common stockholders received $600,000 in cash dividends. Interest totaling $150,000 was paid on outstanding debts. Operating expenses totaled $300,000, and cost of goods sold was $500,000. What is the tax liability of Pearls, Inc.? Corporate tax rates are shown below: Taxable Income Marginal Tax Rate $0-$50,000 15% $50,001-$75,000 25% $75,001-$100,000 34% $100,001-$335,000 39% $335,001-$10,000,000 34% $10,000,001-$15,000,000 35% $15,000,001-$18,333,333 38% Over $18,333,333 35% 12. What is the purpose of using common size balance sheets and common size income statements?
Pearls, Inc. had sales in 2015 of $2.1 million. The common stockholders received $600,000 in cash dividends. Interest totaling $150,000 was paid on outstanding debts. Operating expenses totaled $300,000, and cost of goods sold was $500,000. What is the tax liability of Pearls, Inc.? Corporate tax rates are shown below: Taxable Income Marginal Tax Rate $0-$50,000 15% $50,001-$75,000 25% $75,001-$100,000 34% $100,001-$335,000 39% $335,001-$10,000,000 34% $10,000,001-$15,000,000 35% $15,000,001-$18,333,333 38% Over $18,333,333 35% 12. What is the purpose of using common size balance sheets and common size income statements?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pearls, Inc. had sales in 2015 of $2.1 million. The common stockholders received $600,000 in cash dividends. Interest
totaling $150,000 was paid on outstanding debts. Operating expenses totaled $300,000, and cost of goods sold was
$500,000. What is the tax liability of Pearls, Inc.?
Corporate tax rates are shown below:
Taxable Income Marginal Tax
Rate
$0-$50,000 15%
$50,001-$75,000 25%
$75,001-$100,000 34%
$100,001-$335,000 39%
$335,001-$10,000,000 34%
$10,000,001-$15,000,000 35%
$15,000,001-$18,333,333 38%
Over $18,333,333 35%
12. What is the purpose of using common size
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