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Lintner Beverage Corp. reported the following information from their financial statements: Operating income (EBIT) = $14,500,000 Interest payments on long-term debt = $1,750,000 Dividend income

Lintner Beverage Corp. reported the following information from their financial statements:

Operating income (EBIT) = $14,500,000

Interest payments on long-term debt =

$1,750,000
Dividend income = $1,000,000

Calculate Lintner's total tax liability using the corporate tax schedule below:

Taxable Income

Tax on Base of Bracket

Percentage on Excess above Base

$0-$50,000

$0

15%

$50,000-$75,000

7,500

25

$75,000-$100,000

13,750

34

$100,000-$335,000

22,250

39

$335,000-$10,000,000

113,900

34

$10,000,000-$15,000,000

3,400,000

35

$15,000,000-$18,333,333

5,150,000

38

Over $18,333,333

6,416,667

35

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