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Lintner Beverage Corp. reported the following information from their financial statements: $14,000,000 $1,750,000 $1,000,000 Operating income (EBIT) Interest payments on long-term debt = Dividend income

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Lintner Beverage Corp. reported the following information from their financial statements: $14,000,000 $1,750,000 $1,000,000 Operating income (EBIT) Interest payments on long-term debt = Dividend income = Calculate Lintner's total tax liability using the corporate tax schedule below: Tax on Base of Bracket Percentage Taxable Income $0-$50,000 $50,000-$75,000 $75,000-$100,000 $100,000-$335,000 $335,000-$10,000,000 $10,000,000-$15,000,000 $15,000,000-$18,333,333 Over $18,333,333 on Excess above Base 15% $0 7,500 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 25 34 39 34 35 38 35 Assume a 70% dividend exclusion for tax on dividends. a. $4,077,875 Ob. $3,348,150 c. $5,236,850 d. $4,292,500 e. $4,378,350

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