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Lintner Beverage Corp. reported the following information from their financial statements: Operating income (EBIT) = Interest payments on long-term debt = Dividend income =
Lintner Beverage Corp. reported the following information from their financial statements: Operating income (EBIT) = Interest payments on long-term debt = Dividend income = Corporate tax rate = $10,500,000 $1,900,000 $1,000,000 25% Assume a 50% dividend exclusion for taxes on dividends. What is the firm's total tax liability? . a. $2,150,000 b. $2,625,000 c. $2,275,000 d. $2,875,000 e. $2,400,000
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