Please help on this finance! Griffey Communications recently realized $122,500 in operating income. The company had...
Please help on this finance!
Griffey Communications recently realized $122,500 in operating income. The company had interest income of $25,000 and realized $70,000 in dividend income. The company's interest expense was $40,000. Using the corporate tax schedule below, what is Griffey's tax liability?
| Taxable Income | Tax on Base of Bracket | Percentage on Excess above Base | ||
| Up to $50,000 | $0 | 15% | ||
| $50,000-$75,000 | 7,500 | 25 | ||
| $75,000-$100,000 | 13,750 | 34 | ||
| $100,000-$335,000 | 22,250 | 39 | ||
| $335,000-$10,000,000 | 113,900 | 34 | ||
| $10,000,000-$15,000,000 | 3,400,000 | 35 | ||
| $15,000,000-$18,333,333 | 5,150,000 | 38 | ||
| Over $18,333,333 | 6,416,667 | 35 | ||
Assume a 70% dividend exclusion for tax on dividends.
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Homework Answers
Computation of gross total income of the company:
Operating income : 122500
+ interest income ; 25000
+ dividend income : 21000(70% of dividend is excluded for tax purposes)
-interest expense : 40000
Total = 128500
Tax base as per the rates table up to the amount 100000 = 22250
tax on excess 28500 at 39% = 11115
So, the total tax liability = 22250+11115 = 33365(D)
So option = D
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Please help on this finance!
Griffey Communications recently realized $122,500 in operating
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inwasted this question for a wrong answer can someone give me the correct answers please. updated...
inwasted this question for a wrong answer can someone give me the
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updated information
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inwasted this question for a wrong answer can someone give me the
correct answers please.
updated information
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(a) and (b). nothing for (c) just show to resolve.
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The
Talley Corporation had a taxable income of $320000 from operations
after all operating costs but before (1) interest charges of
$64000, (2) dividends received of $9600 (3) dividends paid of
$16000 and (4) income taxes.
What are the firms income tax liabilitu and its after tax
income?
Income tax liability
After tax libility
What are the companys marginal and average tax rates on
taxable income?
Marginal tax rate %
Average tax rate %
TABLE 2-1 Corporate Tax Rates as...
Hunt Taxidermy, Inc. is
concerned about the taxes paid by the company in 2018. In addition
to $7.5 million of taxable income, the firm received $614,000 of
interest on state-issued bonds and $340,000 of dividends on common
stock it owns in Oakdale Fashions, Inc. (Use Table 2.3.)
Calculate Tax Liability:
Calculate the Average Tax Rate:
Calculate Marginal Tax Rate:
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$7,100,000. Use the Corporate Tax Schedule, Table 9.12, to
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