Suppose that in addition to $18.05 million of taxable income, Texas Taco, Inc., received $2,300,000 of interest on state-issued bonds and $730,000 of dividends on common stock it owns in Arizona Taco, Inc. (Use corporate tax rate of 21 percent for your calculations.) a. Calculate Texas Taco’s income tax liability. (Enter your answer in dollars not in millions.) Income tax liability ---
Suppose that in addition to $18.05 million of taxable income, Texas Taco, Inc., received $2,300,000 of interest on state-issued bonds and $730,000 of dividends on common stock it owns in Arizona Taco, Inc. (Use corporate tax rate of 21 percent for your calculations.) a. Calculate Texas Taco’s income tax liability. (Enter your answer in dollars not in millions.) Income tax liability ---
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter2: Financial Statements, Cash Flow,and Taxes
Section: Chapter Questions
Problem 10MC
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Suppose that in addition to $18.05 million of taxable income, Texas Taco, Inc., received $2,300,000 of interest on state-issued bonds and $730,000 of dividends on common stock it owns in Arizona Taco, Inc. (Use corporate tax rate of 21 percent for your calculations.)
a. Calculate Texas Taco’s income tax liability. (Enter your answer in dollars not in millions.)
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b. What are Texas Taco’s average and marginal tax rates on taxable income? (Round your answers to 2 decimal places.)
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