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please show all work Zombies, Inc. is suing Frankenstein, Inc. for copyright infringement (Zombies maintains they came up with the motto in problem 1 first!).
please show all work
Zombies, Inc. is suing Frankenstein, Inc. for copyright infringement (Zombies maintains they came up with the motto in problem 1 first!). OK, this has absolutely nothing to do with this problem I just thought I'd throw it in. Anyway, you've left Frankenstein for Zombies (well you do understand the industry after all) and are now preparing Zombies current Income Statement. You are down to the lines "tax" and "net profit after tax" and therefore need to calculate Zombies federal tax. Here's the data you have been working with: Sales: $1,400,000; cost of goods sold: $845,000; G&A (general & administrative expenses): $300,000; advertising: $75,000. Zombies took out a $120,000 loan this year and paid $12,000 in loan interest this year. They had invested in Disney (there was something about the song, "It's a small world" that they thought could be used to drive humans crazy) and received a dividend check (be careful with dividend income!) from Disney of $20,000. Their capital structure includes both preferred and common stock and they paid $10,000 and $15,000 respectively in dividends 9remember "dividends" are payments to the owners!). Given all that I need you to tell me three things: what was their federal tax bill, what was their average tax rate, what was their marginal tax rate Step by Step Solution
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