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During the year just ended, Sheri Rog distributors, inc. had pre tax earnings from operations of $489,000. in addition, during the year it received $24,000
During the year just ended, Sheri Rog distributors, inc. had pre tax earnings from operations of $489,000. in addition, during the year it received $24,000 in income from interest bonds it held in Zig manufacturing and received $24,000 in income from dividends of 5% common stock holding it in Tank industries, Inc. Shering is in the 40% 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 attributable to the interest income from the Zig manufacturing bonds. C. find the tax and the after tax amount attributable to the dividend income from the Tank industries inc common stock. D. compare, contrast, and discuss the after tax amounts resulting from the interest income and the dividend income calculated in part b and c. E. what is the firms total tax liability for the year?
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