Note: For this assignment, please submit answers and calculations via an Excel spreadsheet or some equivalent spreadsheet method.

1 Explain how US corporations face "double taxation". In 3-5 sentences, briefly describe how it works.

2 - You are given a financial statement with the following financial information for a local company:

Financial Performance for 2018

Revenue = $1,500,000

COGS = $400,000

Sales, General & Administrative Expenses = $300,000

Interest Expense = $150,000

Tax Rate = 25%

Shareholders equity = $1,500,000

Depreciation = $0