Interest versus dividend income During the year just ended, Shering Distributors, Inc., had pretax earnings from operations of $485,000. In addition, during the year it received $26,000 in income from interest on bonds it held in Zig Manufacturing and received $26,000 in income from dividends on its 5% common stock holding in Tank Industries Inc. Shering is in the 34% 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 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 dividend income calculated in parts b. and c. e. What is the firm's total tax liability for the year