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The Colton Thomsen Corporation had taxable income of $270.000 from operations after all operating costs but before (1) interest expense of $52,000, (2) interest income
The Colton Thomsen Corporation had taxable income of $270.000 from operations after all operating costs but before (1) interest expense of $52,000, (2) interest income of $16,000. (3) dividends paid of $30,000. (4) dividends received of $12,000, and (5) income taxes. What is the company's average tax rate on taxable income? (Assume the corporation owns less than 20% of the firm issuing dividends. Use the old tax rules and dividend exclusion rules.) A. 31.95 percent B. 32.01 percent C.39.00 percent D. 31.44 percent E. 34.00 percent
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