Question: 10 The Dana Flatt Corporation had sales of $2 million this past year. Its COGS was $1.2 million and its operating expenses were $400,000. Interest expenses on outstanding debt were $164,000 and the company paid $40,000 in stock dividends. Its tax rate is 34%. What was the company's taxable income and tax liability (taxes paid)?. Question: 11 Corporations face the following tax schedule: 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% Company Z has $65,000 of taxable income from its operations, $5,000 of interest in he and $30,000 of dividend income from preferred stock it holds in other corporations. What is Company Z's tax liability? Assume a 70% dividend exclusion for Tax on Dividends. a. $18,736 b. $17,225 c. $15,110 d. $11,786 e. $18,888 Question: 12 HippCo Federal taxable income for the year is $1,000,000. Its operations are confined to Oregon and Montana. HippCo generates only business and interest income for the year. Federal cost recovery deductions totaled $200,000 Montana used this amount, but Oregon allowed only $120,000 Interest income of $25,000 from Oregon bonds was excluded from Federal taxable income. Oregon taxes all municipal bond income, while Montana taxes all such interest except that from its own bonds. Interest income from Treasury bonds that were recognized on the Federal return came to $11,000. Neither state taxes such income. Oregon's state taxable income is $ and Montana's state taxable income is $
Question: 10 The Dana Flatt Corporation had sales of $2 million this past year. Its COGS was $1.2 million and its operating expenses were $400,000. Interest expenses on outstanding debt were $164,000 and the company paid $40,000 in stock dividends. Its tax rate is 34%. What was the company's taxable income and tax liability (taxes paid)?. Question: 11 Corporations face the following tax schedule: 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% Company Z has $65,000 of taxable income from its operations, $5,000 of interest in he and $30,000 of dividend income from preferred stock it holds in other corporations. What is Company Z's tax liability? Assume a 70% dividend exclusion for Tax on Dividends. a. $18,736 b. $17,225 c. $15,110 d. $11,786 e. $18,888 Question: 12 HippCo Federal taxable income for the year is $1,000,000. Its operations are confined to Oregon and Montana. HippCo generates only business and interest income for the year. Federal cost recovery deductions totaled $200,000 Montana used this amount, but Oregon allowed only $120,000 Interest income of $25,000 from Oregon bonds was excluded from Federal taxable income. Oregon taxes all municipal bond income, while Montana taxes all such interest except that from its own bonds. Interest income from Treasury bonds that were recognized on the Federal return came to $11,000. Neither state taxes such income. Oregon's state taxable income is $ and Montana's state taxable income is $
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 7P
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Transcribed Image Text:Question: 10
The Dana Flatt Corporation had sales of $2 million this past year. Its COGS was $1.2 million
and its operating expenses were $400,000. Interest expenses on outstanding debt were
$164,000 and the company paid $40,000 in stock dividends. Its tax rate is 34%. What was the
company's taxable income and tax liability (taxes paid)?.
Question: 11
Corporations face the following tax schedule:
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%
Company Z has $65,000 of taxable income from its operations, $5,000 of interest in he
and $30,000 of dividend income from preferred stock it holds in other corporations.
What is Company Z's tax liability? Assume a 70% dividend exclusion for Tax on Dividends.
a. $18,736
b. $17,225
c. $15,110
d. $11,786
e. $18,888
Question: 12
HippCo Federal taxable income for the year is $1,000,000. Its operations are confined to
Oregon and Montana. HippCo generates only business and interest income for the year.
Federal cost recovery deductions totaled
$200,000
Montana used this amount, but Oregon allowed only $120,000
Interest income of $25,000 from Oregon bonds was excluded from Federal taxable income.
Oregon taxes all municipal bond income, while Montana taxes all such interest except that
from its own bonds. Interest income from Treasury bonds that were recognized on the
Federal return came to $11,000. Neither state taxes such income.
Oregon's state taxable income is $
and Montana's state taxable income is $
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