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Last year, Vandalay Industries had $300,000 in taxable income from its operations before the following: $40,000 in interest expense, $10,000 in interest income, $30,000 in
Last year, Vandalay Industries had $300,000 in taxable income from its operations before the following: $40,000 in interest expense, $10,000 in interest income, $30,000 in dividends paid and $20,000 in dividend income. Assuming that 50% of dividend income is taxable and a 25% tax rate, what was the company's tax liability for the year?
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