From a corporation's point of view, does the tax treatment of dividends and interest paid favor the use of debt financing or equity financing? Equity financing Debt financing You bought 1,000 shares of Tund Corp, stock for $60.59 per share and sold it for $82.35 per share after a few years. How will your gain or loss be treated when you file your taxes? As a capital gain taxed at the long-term tax rate As a capital gain taxed at the current ordinary-income tax rate Depreciation expenses directly affect a company's taxable income. An increase in depredation expense will lead to a ___ taxable income. It will ___ tax deducted from a company's earnings, thus leading to a ___ operating cash flow. If a taxpayer is liable to pay $8, 950 under AMT law but $7, 500 according to the regular tax system, the taxpayer will need to pay taxes according to the ___. Suppose a firm in the 40% federal-plus-state tax bracket needs to pay $1 In dividends to its shareholders. What is the pretax income it should have to pay this dividend? $1.00 $1.67