A&b

Interest versus dividend income During the year just ended, Shering Distributors, Inc, had pretax earnings from operations of $485,000. In addition, during the year it received $25,000 n income rom interest on bondst held i,2g Manufacturing and received S25000 n ncome from, dvidends on ts 5% common stock hoang n lak i d es inc m the 34% tax bracket and is eligible for a 70% dividend exclusion on its Tank Industries stock. a. Calculate the firm's tax on its operating earnings only b. Find the tax and the after-tax amount atributable to the interest income from Zig Manufacturing bonds c. Find the tax and the after-tax amount attributable to the dvidend income from the Tank Industries, Inc, common stock est . compare, contrast and discuss the after-tax amounts resulting trom the interest income and dividend ncome caculated in pats band e. What is the firm's total tax liability for the year? a. The tax on operating earnings is (Round to the nearest dolar) b. Complete the table below to compute the tax and the after-tax amount attributable to the interest income (Round to the nearest dollar.) Interest Income Before-tax amount Less Applicable exclusion Taxable amount Tax (34%) After-dax amount