Interest versus dividend income Last year, Shering Corporation had pretax earnings of $$487,000.$ In addition, during the year it received $$29,000$ in income from interest on bonds it held in Zig Manufacturing and received $$29,000$ in income from dividends on its $4\%$ common stock holding in Tank Industries, Inc. Shering faces a flat $21\%$ tax rate and is eligible for a $50\%$ dividend exclusion on its Tank Industries stock.

a$.$ Calculate the firm's tax on its operating earmings only.

b$.$ Find the tax and the aftertax amount attributable to the interest income from Zig Manufacturing bonds.

c$.$ Find the tax and the afer$-$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?

A$.$ The tax on operating earnings is $$102270.($Round to the nearest dollar.$)$

b$.$ Complete the table below to compute the tax and the afen$-$tax amount attributable to the interest income: $($Round to the nearest dollar.$)$

$\backslash$table$[[$Interest Income,,$],[$Before$-$tax amount,$$,29,000],[$Less: Applicable exclusion,$0,],[$Taxable amount,$$,29,000],[$Tax $(21\%),6,090,],[$Ater$-$tax amount,$$,22,910]]$

c$.$ Complete the table below to compute the tax and the after$-$tax amount attributable to the dividend income: $($Round to the nearest dollar.$)$

Dividend Income

$\backslash$table$[[$Before$-$tax amount $$,29,000$