Week One Homework

2.6 In its most late(a) financial asseveratements, tonichouse Inc. reported $50 cardinal of take in incomeand $810 one million million million of retain earnings. The previous retain earnings were $780 million.How ofttimes in dividends was nonrecreational to sh arholders during the course? naked as a jaybird Balance well-kept earning = old Balance bear earning + bread income Dividend paid Dividend paid = Previous Balance retained earning + net income - New Balance retained earning Dividend = $780 million + $50 million - $810 million = $830 million - $810 million = $20 million 2.7 The Talley trade had a valueable income of $365,000 from operations after all operatingcosts but onward (1) sake charges of $50,000, (2) dividends authorized of $15,000, (3)dividends paid of $25,000, and (4) income assesses. a)What ar the firms income tax liability and its after-tax income? b)What are the companys b pointline and average tax recite on taxable income? For a corporation, 70% of dividends received are excluded from taxes; so taxable dividendsare mensurable with the remained 30% ( rascal 72 of the book). orders appraise financial obligation: taxable operating income $ 365,000 assessable interest ($ 50,000) Taxable dividend received$ 4,50015000*(1 ± 0.

70)Total taxable income$ 319,500 The marginal adapt up for this company is 39% (this information is in the embodied tax target tablein page 71)The non-taxable dividends are: $15,000 * 0.7 = $ 10,500The tax is:Tax Liability =$ 22,250 + (319,500 ± light speed,000)*0.39 = $ 107,855After Tax-income:Taxable income $ 319,500Taxable ($ 107855)Non-taxable dividendReceived 15000*(0.70) $ 10,500Net income $ 222,145Average tax rate = Taxable interest income / Taxable operating income= 107855 / 319500 = 0.337574 *100%= 33.7574 = 33.76 %Average tax rate is 33.8 %2.9 The Shrieves Corporation has $10,000 that it plans to invest in marketable securities. It ischoosing among AT& adenylic pungent;T bonds, which yield 7.5%, state of Florida muni bonds, which yield5% (but are not taxable), and AT&T preferred...If you pauperization to get a amply essay, order it on our website: Orderessay

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