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    What is the corporate tax liability for last year?

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    Your corporation had the following cash flows last year:

    Operating Income - $2,500,000
    Interest Received - $100,000
    Interest Paid - $450,000
    Dividends Received - $200,000
    Dividends Paid - $500,000

    Your firm pays taxes at a rate of 40% (federal and state combined) and was profitable last year. Calculate the firm's corporate tax liability for last year.

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    https://brainmass.com/business/accounting/corporate-tax-liability-last-year-332663

    Solution Preview

    Your corporation had the following cash flows last year:

    Operating Income - $2,500,000
    Interest Received - $100,000
    Interest Paid - $450,000
    Dividends Received - $200,000 ...

    Solution Summary

    This solutin shows how to determine the corporate tax liability for last year with calculations and answer.

    $2.49

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