Business, 18.01.2020 02:31 niele123

Interest versus dividend income during the year just ended, shering distributors, inc., had pretax earnings from operations of $490,000. in addition, during the year it received $20,000 in income from interest on bonds it held in zig manufacturing and received $20,000 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 firmâs 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 firmâs total tax liability for the year?

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Interest versus dividend income during the year just ended, shering distributors, inc., had pretax e...