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Glacier Company owns 70% of Guadalupe Company. During the current year Guadalupe reported net income of $500,000 and paid dividends of $200,000. The tax rate
Glacier Company owns 70% of Guadalupe Company. During the current year Guadalupe reported net income of $500,000 and paid dividends of $200,000. The tax rate is 25%. Assume dividends received are deducted at 65% for ownership between 20% and 80%. What current tax liability is created by this dividend payment?
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