ration had taxable operating income of $360,000 (1.e., earnings from operati osts). Talley also had (1) interest charges of $60,000, (2) dividends received of $5 ,000. Its federal tax rate was 21% (ignore any possible state corporate taxes). Rec e tax exempt. e firm's taxable income? Round your answer to the nearest dollar. 2,500 e tax expense? Round your answers to the nearest dollar.
ration had taxable operating income of $360,000 (1.e., earnings from operati osts). Talley also had (1) interest charges of $60,000, (2) dividends received of $5 ,000. Its federal tax rate was 21% (ignore any possible state corporate taxes). Rec e tax exempt. e firm's taxable income? Round your answer to the nearest dollar. 2,500 e tax expense? Round your answers to the nearest dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Corporate Tax Liability
The Talley Corporation had taxable operating income of $360,000 (i.e., earnings from operating revenu
operating costs). Talley also had (1) interest charges of $60,000, (2) dividends received of $5,000, and
paid of $20,000. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall that 5
received are tax exempt.
What is the firm's taxable income? Round your answer to the nearest dollar.
$
302,500
What is the tax expense? Round your answers to the nearest dollar.
S
63,525
What is the after-tax income? Round your answers to the nearest dollar.
*
238,976
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