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Assume that mainline Homecare, a for-profit corporation, had exactly the same situation as reported in Problem 3.5. However, Mainline must pay taxes at a rate
Assume that mainline Homecare, a for-profit corporation, had exactly the same situation as reported in Problem 3.5. However, Mainline must pay taxes at a rate of 40 percent of pretax (operating) income. Assuming that the same revenues and expenses reported for financial accounting purposes would be reported for tax purposes, redo Problem 3.5 for Mainline. Consider Southeast Home Care, a for profit business. In 2011, its net income was $1, 500,000 and it distributed $500,000 to owners in the form of dividends. Its beginning of year equity balance was $12,000,000. Use this information to construct the business's statement of changes in equity. What is the ending 2011 value of the business's equity account
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