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Playa and Quintet are equal shareholders in Corporation PQ. Both shareholders have a 37 percent marginal tax rate. PQs financial records show the following: Gross
Playa and Quintet are equal shareholders in Corporation PQ. Both shareholders have a 37 percent marginal tax rate. PQs financial records show the following: Gross income from sales of goods $ 980,000 Operating expenses (410,000) Interest paid on debt to Playa and Quinetta (62,000) Dividend distributions: Playa (50,000) Quinetta (50,000) Required: Compute the combined tax cost for PQ, Playa, and Quinetta. How would your computation change if the interest on the shareholder debt was $162,000 and PQ paid
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