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The Main Street Pub & Grill has the following cash flows: Operating income: $300,000 Interest received: $20,000 Interest paid: $65,000 Dividends received: $40,000 Dividends paid:
The Main Street Pub & Grill has the following cash flows: Operating income: $300,000 Interest received: $20,000 Interest paid: $65,000 Dividends received: $40,000 Dividends paid: $50,000 If the applicable tax rate is 28% (federal and state combined), and if 70% of dividends received are exempt from taxes, what is the corporation's tax liability?
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