Question
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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Survey of Accounting
Authors: Edmonds, old, Mcnair, Tsay
2nd edition
9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555
