Compute the federal tax liability (Wendt Corp) and DuPont Analysis (Gardial & Sons)
1. What is Wendt Corporation federal income tax liability if they had $10,500,000 in taxable income?
2. If Wendt Corp receives an additional $1,000,000 in taxable interest income, how does the tax liability change?
3. Instead of taxable interest income, assume Wendt received an additional $1,000,000 in dividends on stock it own. How does this change the tax liability?
Instructional notes and computations are provided to explain Wendt Corporation taxes and Du Pont Analysis for Gardial & Sons.