Your corporation has the following cash flows: Operating income $250,000 Interest received $ 10,000 Interest paid $ 45,000 Dividends received $ 20,000 Dividends paid $ 50,000 If the applicable income tax rate is 40% (federal and state combined), and if 70% of dividends received are exempt from taxes, what is the corporation's tax liability? * $ 92,820 O $102,334 $ 88,400 O $ 83,980 O $97,461

Your corporation has the following cash flows: Operating income $250,000 Interest received $ 10,000 Interest paid $ 45,000 Dividends received $ 20,000 Dividends paid $ 50,000 If the applicable income tax rate is 40% (federal and state combined), and if 70% of dividends received are exempt from taxes, what is the corporation's tax liability? * $ 92,820 O $102,334 $ 88,400 O $ 83,980 O $97,461

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

QUESTION 1 "Consider a C corporation. The corporation earns $4 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 50% of its earnings to its shareholders as a dividend. The corporate tax rate is 30%, the tax rate on dividend income is 20%, and the personal income tax rate is set at 28%. What are the shareholder's earnings from the corporation after all corresponding taxes are paid? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer; or if the answer is $500, write enter 500 as an answer."
Compute the taxable income & Earnings and profit for a corporation receipts from services receipts from services 75,000 dividend income 5000 interest from municipal bonds 2,000 additional capital from shareholders 10,000 wages & rent 30,000 fines 2,000 section 179 exp 20,000 estimated fed tav pd 5,000
8. What is the after-tax return to a corporation that buys a share of preferred stock at $45, sells it at year-end at $45, and receives a $5 year-end dividend? The firm is in the 20% tax bracket. Revenue = $5 For a company, taxable = $5 * 30% = $1.5 Tax = $1.5* 20% = $0.3 After tax income = $5 - $0.3= $4.7 Return $4.7/$45= 10.44%
Given an asset with a net book value (NBV) of $35,000. a. What are the after-tax proceeds for a firm in the 33% tax bracket if this asset is sold for $47,000 cash? After-tax proceeds $ 43,040 b. What are the after-tax proceeds for this same firm if the asset is sold for $21,000 cash? After-tax proceeds
A company recently reported $9.8 million of net income. Its EBIT was $15 million, and its federal tax rate was 22%(ignore any possible state corporate taxes).What was its EBT? Blank 1What was its Tax liability? Blank 2What was its interest expense? Blank 3
The tax bracket and holdings of your client are as follows: Federal tax bracket = 33% Investment Annual Income June 30, Last Year's Purchase Price June 30, This Year's Market Price Money fund $6,500 $100,000 $100,000 11% T bonds $11,000 $100,000 $140,000 S&P 500 Index Fund $6,000 $100,000 $160,000 Computer stock fund $3,000 $100,000 $85,000 *There have been no capital gain distributions. During the 12 months from June 30 last year, through June 30 this year, the portfolio earned in annual yield and before-tax appreciation, respectively: 5.5% yield and 17.5% appreciation 5.5% yield and 21.3% appreciation 6.6% yield and 17.5% appreciation 6.6% yield and 21.3% appreciation
1 Calculate the Tax implications if the company has earnings before taxes of $ 350,000.00 Both if the company is a Corporation or Sole proprietorship What is the total taxes, average rate and the marginal tax rate Corporate Tax Rate: Total Taxes as Coorporation Personal Marginal Income Tax Rates: Single: Taxable Income Over--- 0 9,525 38,700 82,500 157,500 200,000 500,000 Total Tax Paid Marginal Tax Rate Average Tax Rate Taxable Income 350000 But not over Over--- 0 9,525 38,700 82,500 157,500 200,000 500,000 === 9,525 38,700 82,500 157,500 200,000 500,000 But not over --- 9,525 38,700 82,500 157,500 200,000 500,000 Marginal Tax Rate 10% 12% 22% 24% 32% 35% 37% Marginal Tax Rate 10% 12% 22% 24% 32% 35% 37% 21% Difference Incremental Taxes Cumulative Taxes
XYZ Corporation, a calendar year C Corporation, has $100,000 gross business receipts, $5,000 interest income from corporate bonds, $20,000 qualified dividend income from a 5% owned C Corporation, $110,000 business expenses, and $2,000 charitable contribution. How much is XYZ's taxable income (or net operating loss) for the current year?\\n\\nGroup of answer choices\\n\\n$0 Taxable income.\\n\\n$3,000 Taxable income.\\n\\n$6,500 Taxable income.\\n\\n$6,750 Taxable income.
My problem with question
Assume a corporation has earnings before depreciation and taxes of $100,000, depreciation of $50,000, and that it has a 30 percent tax bracket. Compute its cash flow using the format below. Earnings before depreciation and taxes Depreciation Earnings before taxes Taxes @ 30% Earnings after taxes Depreciation
A corporation earns $8.30 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the total amount of taxes paid per share if the company has a payout ratio of 45%? Answer to two decimals (dollars and cents) A corporation earns $8.30 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the total amount of taxes paid per share if the company has a payout ratio of 45%? Answer to two decimals (dollars and cents) ASAP
3. (a) Debt is 20% of assets for an organization. Total assets are$10,000. The tax rate is 40%. The interest rate is 10%. EBIT profit is$1000. What is the after taxes and interest profit? What is the ROE?Profit_______________ROE________________(b) If in 1(a) debt is increased to 50% of assets, what will be the aftertaxes and interest profit and the ROE?Profit__________________ROE___________________