The Dakota Corporation had a 2021 taxable income of $15,000,000 from operations after all operating costs but before (1) interest charges of $3,300,000, (2) dividends received of $270,000, (3) dividends paid of $1,950,000, and (4) income taxes (the firm's tax rate is 21 percent). a. Calculate Dakota's income tax liability. (Round your answer to the nearest dollar amount.) Answer is complete but not entirely correct. Income tax liability $ 1,178,100 C b. What are Dakota's average and marginal tax rates on taxable income? (Round your answers to 2 decimal places.) Answer is complete and correct. Average tax rate. Marginal tax rate 21.00% 21.00 %
The Dakota Corporation had a 2021 taxable income of $15,000,000 from operations after all operating costs but before (1) interest charges of $3,300,000, (2) dividends received of $270,000, (3) dividends paid of $1,950,000, and (4) income taxes (the firm's tax rate is 21 percent). a. Calculate Dakota's income tax liability. (Round your answer to the nearest dollar amount.) Answer is complete but not entirely correct. Income tax liability $ 1,178,100 C b. What are Dakota's average and marginal tax rates on taxable income? (Round your answers to 2 decimal places.) Answer is complete and correct. Average tax rate. Marginal tax rate 21.00% 21.00 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Dakota Corporation had a 2021 taxable income of $15,000,000 from operations after all operating costs but before (1) interest
charges of $3,300,000. (2) dividends received of $270,000, (3) dividends paid of $1,950,000, and (4) income taxes (the firm's tax rate is
21 percent).
a. Calculate Dakota's income tax liability. (Round your answer to the nearest dollar amount.)
Answer is complete but not entirely correct.
Income tax liability
$1,178,100
b. What are Dakota's average and marginal tax rates on taxable income? (Round your answers to 2 decimal places.)
Answer is complete and correct.
Average tax rate
Marginal tax rate
21.00%
21.00 %
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