Answered step by step
Verified Expert Solution
Question
1 Approved Answer
last year Rotterdam inc had sales revenue of $980,000. costs other than depreciation and interest expense were 20% of sales. depreciation expense was $50,000 interest
last year Rotterdam inc had sales revenue of $980,000. costs other than depreciation and interest expense were 20% of sales. depreciation expense was $50,000 interest expense was $95,000 and dividends paid were $23,000. the company also received dividends of $8000 from a company in which it had 30% ownership stake. Which of the following statements is most correct?
which of the following statements is most correct?
a. The firms taxable income was $637,400
b. the firms after-tax income was $405,564
c. The firms marginal tax rate was 39%
d. The firms tax for the year was $113,900
e. none of the above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started