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Griffey Communications recently realized $122,500 in operating income. The company had interest income of $15,000 and realized $70,000 in dividend income. The company's interest expense
Griffey Communications recently realized $122,500 in operating income. The company had interest income of $15,000 and realized $70,000 in dividend income. The company's interest expense was $40,000. Its corporate tax rate is 25%. Griffey is a small company, so it is not subject to the interest expense deduction limitation. Assume a 50% dividend exclusion for taxes on dividends. a. $1,875 b. $33,125 c. 543,125 d. 524,375 e. $41,875
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