xPT-9 (Sila LU) Interest versus dividend income During the year just ended, Shering Distributors, Inc., had pretax earnings from operations of $480,000. In addition, during the year it received $23,000 in income from interest on bonds it held in Zig Manufacturing and received $23,000 in income from dividends on its 5% common stock holding in Tank Industries, Inc. Shering is in the 40% tax bracket and is eligible for a 70% dividend exclusion on its Tank Industries stock. a. Calculate the firm's tax on its operating earnings only. b. Find the tax and the after-tax amount attributable to the interest income from Zig Manufacturing bonds. c. Find the tax and the after-tax amount attributable to the dividend income from the Tank Industries, Inc., common stock. d. Compare, contrast, and discuss the after-tax amounts resulting from the interest income and dividend income calculated in parts b. and c. e. What is the firm's total tax liability for the year? LUSS. APPI GIUDION Taxable amount s 23,000 Tax (40%) 9,200 After-tax amount 13,800 c. Complete the table below to compute the tax and the after-tax amount attributable to the dividend income: (Round to the nearest dollar.) Dividend Income $ Before-tax amount Less: Applicable exclusion Taxable amount Tax (40%) $ After-tax amount $ Enter any number in the edit fields and then click Check Answer. 2 2 parts Clear All Check Answer remaining