Your corporation has the following cash flows: Operating income $360,000 Interest Income 20,000 Interest Paid 50,000 Dividend Received 30,000 Dividend Paid 40,000 If the applicable income tax rate is 30% (federal and state combined), and if 70% of dividends received are exempt from taxes, what is the corporations tax liability?

A loss incurred by a corporation A. Cannot be used to reduce taxes in other years except with special permission from the IRS. B. Must be carried forward unless the company has had 3 loss years in a row. C. Can be carried back 20 years, then carried forward up to 3 years following the loss. D. Can be carried back 3 years, then carried forward up to 20 years following the loss. E. None of the above

In general, as you read down the left-hand side of a balance sheet, which of the following changes do you observe? A. The assets are more fully depreciated. B. The assets are growing in value. C. The assets are increasing in maturity. D. The assets are becoming more liquid. E. The assets are becoming less liquid