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2019, Dillon's Fence Company had sales of $1,600,000 with cost of goods sold of $700,000 and operating expenses of $325,000 (which included depreciation of $72,000).
2019, Dillon's Fence Company had sales of $1,600,000 with cost of goods sold of $700,000 and operating expenses of $325,000 (which included depreciation of $72,000). Interest expenses amounted to $39,000. The company received $140,000 in dividend income and $80,000 in interest income. The company paid $85,000 in dividends to stockholders. In order to partially fund this dividend the company sold stock in McDonald's which it had owned for 3 years. The stock sale resulted in a capital gain of $95,000. (worth 18 points total) a. Compute the tax payment or refund for the company.
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