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Builtrite had sales of $700,000 and COGS of $280,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $50,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $70,000 was realized during the year along with a capital loss of $50,000 Based on the above information, answer the following 4 questions D Question 1 2 pts What is Builtrite's taxable income? $280,000 $257,000 $242,000 $217,000 Question 2 2 pts Based on their taxable income, what is Builtrite's tax liability? $67,880 $77,630 $83,480 $92,450 Question 3 2 pts If we add to our problem that Builtrite also had $10,000 in interest expense, how much would this interest expense cost Builtrite after taxes? $17,000 $12,200 $6,100 $3,900 Question 4 2 pts If Builtrite had experienced a long-term capital loss of $30,000 (instead of the $50,000 long-term capital loss stated in the problem), and still had the $70,000 long-term capital gain stated in the problem, which of the following is correct (compared to the original answer) taxable income would increase by an additional $40,000 taxable income would increase by an additional $20,000 taxable income would increase by an additional $25,000 taxable income would not change Question 5 2 pts (This problem is not related to the above problem) Last year Biltrite had retained earnings of $140,000. This year, Builtrite had true net profits after taxes of $65,000 which includes common stock dividends received of $10,000, and also paid a preferred dividend of $35,000. What is Builtrite's new level of retained earnings? $180,000 $190.000 $200,000 $170,000 Builtrite had sales of $700,000 and COGS of $280,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $50,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $70,000 was realized during the year along with a capital loss of $50,000 Based on the above information, answer the following 4 questions D Question 1 2 pts What is Builtrite's taxable income? $280,000 $257,000 $242,000 $217,000 Question 2 2 pts Based on their taxable income, what is Builtrite's tax liability? $67,880 $77,630 $83,480 $92,450 Question 3 2 pts If we add to our problem that Builtrite also had $10,000 in interest expense, how much would this interest expense cost Builtrite after taxes? $17,000 $12,200 $6,100 $3,900 Question 4 2 pts If Builtrite had experienced a long-term capital loss of $30,000 (instead of the $50,000 long-term capital loss stated in the problem), and still had the $70,000 long-term capital gain stated in the problem, which of the following is correct (compared to the original answer) taxable income would increase by an additional $40,000 taxable income would increase by an additional $20,000 taxable income would increase by an additional $25,000 taxable income would not change Question 5 2 pts (This problem is not related to the above problem) Last year Biltrite had retained earnings of $140,000. This year, Builtrite had true net profits after taxes of $65,000 which includes common stock dividends received of $10,000, and also paid a preferred dividend of $35,000. What is Builtrite's new level of retained earnings? $180,000 $190.000 $200,000 $170,000
