Question ABuiltrite had sales of $36,000,000 last year. Cost of goods sold were calculated at 65% of sales. Builtrite's operating expenses were $6,000,000 which included depreciation expense.Bonds with a total par value of $12,000,000 were outstanding and had a 9% coupon rate.Builtrite received $200,000 in dividends from stock owned and paid out $600,000 in dividends to its preferred stockholders. Builtrite sold stock that it had purchased in 2008 and realized a $350,000 capital gain.a) -Calculate Builtrite's taxable income and tax liability

Sales36,000

Cost of goods sold23,400 (0.65*36000)

Gross profit12,600

operating expenses6,000

operating profit/EBIT6,600

interest expense1,080 (0.09*12000)

Earning before tax5,520

In dividend60 (0.30*200)

Stock income350 (long term capital gain)

Earning before tax5,930

Tax (0.34)2,016,200 (0.34*5930000)

for the "in dividend" line, where is the 30% coming from?