Question
A Company declared the year pretax income from its operation of KD 224,000. In addition, it received interest of KD30,000 on bonds. It further received
A Company declared the year pretax income from its operation of KD 224,000. In addition, it received interest of KD30,000 on bonds. It further received KD 25,000 dividends on its 20% common stock holding in ABC company. The company is in the 25% tax bracket and it is eligible for 80% exclusion on its X company stock dividend. Required Calculate the after tax income attributable to interest income received from the bonds (ATIB). Calculate the after tax income from dividend income received (ATID). Calculate the companys total tax liability for the year (TTL).
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