Question
The Talley Corporation had a taxable operating income of $360,000 (i.e., earnings from operating revenues minus all operating costs). Talley also had (1) interest charges
The Talley Corporation had a taxable operating income of $360,000 (i.e., earnings from operating revenues minus all operating costs). Talley also had (1) interest charges of $30,000, (2) dividends received of $25,000, and (3) dividends paid of $30,000. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall that 50% of dividends received are tax exempt. What is the firms taxable income? Round your answer to the nearest dollar. What is the tax expense? Round your answers to the nearest dollar. $ What is the after-tax income? Round your answers to the nearest dollar. $
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