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The XYZ, Inc. reported $50 million of taxable income. Its federal tax rate was 21% (ignore any possible state corporation taxes). Assume the firm receives
The XYZ, Inc. reported $50 million of taxable income. Its federal tax rate was 21% (ignore any possible state corporation taxes). Assume the firm receives an additional $1 million of interest income form some bonds it owns. What is the additional tax on this interest income?
a) 5,250
b) 5,050
c) 4,050
d) 4,250
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