Question ..3 Income Tox Returns and Corporate Tax Question 3 of yot aswered arked out of 00 Flag question 1. Delta corporation has the following cash flows: Operating income $250,000 Interest received 10,000 $ Interest paid 45,000 $ Dividends received 20,000 $ Dividends paid 50,000 $ If the applicable income tax rate is 40% (federal and state combined), and if 70% of dividends received are exempt from taxes, what is the Delta's tax liability? 1. Assume that you are in the 25 percent marginal tax bracket and that you have $5,000 to invest. You have narrowed your investment choices down to California bonds with a yield of 7 percent or equally risky ExxonMobil bonds with a yield of 10 percent. Which one should you choose and why? At what marginal tax rate would you be indifferent to the choice between California and ExxonMobil bonds? 1. Tesco began operations in 2014. Tesco has reported the following levels of taxable income (EBT) over the past several years. The corporate tax rate was 36% each year. Assume that the 1. Tesco began operations in 2014. Tesco has reported the following levels of taxable income (EBT) over the past several years. The corporate tax rate was 36% each year. Assume that the company has taken full advantage of the Tax Code's carry-back, carry-forward provisions, and assume that the current provisions were applicable in 2014. What is the amount of taxes the company paid in 2017? Year Taxable income 2014 -$4,200,000 2015 $200,000 2016 $700,000 2017 $4,800,000 Paragraph BIES