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Pearls, Inc. Corporation had sales of $2,100,000 in 2007. Holders of common stock in the corporation had dividends of $400,000 and holders of preferred stock
Pearls, Inc. Corporation had sales of $2,100,000 in 2007. Holders of common stock in the corporation had dividends of $400,000 and holders of preferred stock had dividends of $200,000. Interest paid totaled $150,000, operating expenses totaled $300,000, and production costs were $500,000. The company bought $50,000 worth of stock that was later sold for $70,000. The company's tax liability is: to.
a.$362,000 b. $397,800 c. $255,322 d. $561,385
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