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Please help me with finance! Griffey Communications recently realized $122,500 in operating income. The company had interest income of $25,000 and realized $70,000 in dividend
Please help me with finance!
Griffey Communications recently realized $122,500 in operating income. The company had interest income of $25,000 and realized $70,000 in dividend income. The company's interest expense was $40,000. Using the corporate tax schedule below, what is Griffey's tax liability?
Taxable Income | Tax on Base of Bracket | Percentage on Excess above Base | ||
Up to $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 |
Assume a 70% dividend exclusion for tax on dividends.
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