Business
Business, 18.12.2019 02:31, kimboblack4192

Lintner beverage corp. reported the following information from their financial statements:
operating income (ebit) = $14,000,000
interest payments on long-term debt = $1,750,000
dividend income = $1,000,000

calculate lintner's total tax liability using the corporate tax schedule below:

taxable income tax on base of bracket percentage on excess above base
$0-$50,000 $0 15%
$50,000-$75,000 7,500 25    
$75,000-$100,000 13,750 34    
$100,000-$335,000 22,250 39    
$335,000-$10,000,000 113,900 34    
$10,000,000-$15,000,000 3,400,000 35    
$15,000,000-$18,333,333 5,150,000 38    
over $18,333,333 6,416,667 35 

assume a 70% dividend exclusion for tax on dividends.

a. $5,236,850
b. $4,077,875
c. $4,292,500
d. $4,378,350
e. $3,348,150

answer
Answers: 1

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Lintner beverage corp. reported the following information from their financial statements:
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