Question
(1) The Dawg corporation owns 16% of Company A and 23% of Company B. Dividends received from Company A were $143,000 and from Company B
(1) The Dawg corporation owns 16% of Company A and 23% of Company B. Dividends received from Company A were $143,000 and from Company B were $203,000. If Dawg's taxable income not including the dividends is $2,000,000, calculate Dawg's taxable income after including the dividend information. (2) Flip's Pizzeria Inc. has the following financial items for the current year:
Advertising Expenses $85,000
Cost of Goods Sold $760,000
Dividend Income (Flip owns less than 20% of the other corporation) $2,500
Interest Expense $19,000
Municipal Bond Interest Income $5,500
Other Operating Expenses $450,000
Sales $1,765,000
Wages and Salaries $565,000
Calculate Flip's taxable income for the current year. (3) Suppose XYZ Inc.'s taxable income for the current year is $4,725,500. Calculate XYZ's tax liability. (4) Suppose XYZ Inc.'s taxable income for the current year is $15,052,500. Calculate XYZ's tax liability.
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