The Dakota Corporation had a 2015 taxable income of $33,365,000 from operations after all operating costs but

Question:

The Dakota had a 2015 taxable income of $33,365,000 from operations after all operating costs but before
(1) Interest charges of $8,500,000;
(2) Dividends received of $750,000;
(3) Dividends paid of $5,250,000; and
(4) Income taxes.
a. Use the tax schedule in Table 2.3 to calculate Dakota’s income tax liability.
b. What are Dakota’s average and marginal tax rates on taxable income?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...