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3) (4 Points - Chapter 1) For a particular year, Corporation XYZ had $1,000,000 in sales, $250,000 in costs of goods sold, $50,000 in SG&A

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3) (4 Points - Chapter 1) For a particular year, Corporation XYZ had $1,000,000 in sales, $250,000 in costs of goods sold, $50,000 in SG&A costs, $150,000 in depreciation, and $50,000 in interest expense. Assume a federal tax rate of 25% and a tax rate on dividends of 15%. What is the total tax that will be paid assuming all after tax earnings are paid out as dividends? a. $125,000 b. $181,250 C. $375,000 d. None - the company operated at a net loss, and therefore has no tax liability

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