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Your corporation has the following cash flows: If the applicable income tax rate is 40% (federal and state combined), and if 70% of dividends received
Your corporation has the following cash flows: If the applicable income tax rate is 40% (federal and state combined), and if 70% of dividends received are exempt from taxes, what is the corporation's tax liability? Operating income $250,000 Interest received $10,000 Interest paid $45,000 Dividends received $10,000 Dividends paid $50,000
a. $99,408 b. $72,376 c. $87,200 d. $66,272 e. $74,120
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