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 firms 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.© BrainMass Inc. brainmass.com June 3, 2020, 11:06 pm ad1c9bdddf
Dividends paid are from after tax income and so have no effect on the tax liability.
Dividends received - 70% of the dividend amount is ...
The solution explains how to calculate the amount of tax liability