Question
Explain your answers carefully show all of your work. PLEASE PLEASE SHOW ALL STEPS AND EXPLAIN HOW YOU GOT ANSWER !! I WANT TO BE
Explain your answers carefully show all of your work. PLEASE PLEASE SHOW ALL STEPS AND EXPLAIN HOW YOU GOT ANSWER !! I WANT TO BE ABLE TO UNDERSTAND THIS! THANKS
1.Assume that All Care health system, a for-profit hospital, has $ 2.5 million in taxable income for 2021, and its tax rate is 30 percent.
Question: Given this information, what is the firms net income? (Net income is what remains after taxes have been paid.)
2. A firm that owns the stock of another corporation does not have to pay taxes on the entire amount of dividends received. In general, only 30 percent of the dividends received by one corporation from another are taxable. The reason for the law feature is to mitigate the effect of triple taxation, which occurs when earnings are first taxed at the firm, its dividends paid to the second firm are taxed again, and the dividends paid to stockholders by the second firm are taxed again, and the dividends paid stockholders by the second firm are taxed yet again.
Question: Assume that a firm with a 25percent tax rate receives $400,000 in dividends from another corporation. What taxes must be paid on this dividend, and what is the after-tax amount of the dividend?
3. Angela Brown currently holds tax-exempt bonds of Columbia Healthcare that pay 5percent interest. She is in the 30 percent tax bracket. Her broker wants her to buy some Google Plus taxable bonds that will be issued next week.
Question: With all else the same, what rate must be set on the Google plus bond to make Angela interested in making a switch?
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