The Talley Corporation had taxable operating income of $365,000 (i.e., earnings from operating revenues minus all operating costs). Talley also had (1) interest charges of $50,000, (2) dividends received of $15,000, and (3) dividends paid of $25,000. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall that 50% of dividends received are tax exempt. What is the taxable income? What is the tax expense? What is the after tax income?

Suppose the values for this problem change to:

Operataing Income: 343,103

Interest Charges: 49,684

Dividends Received: 15,519

Dividends Paid: 25,472

Federal Tax Rate: 15%

What is the after-tax income? Round your solution to zero decimals, i.e. you would enter $1,234,567.89 as 1234568.