xExam 3- ACCT 545 Sp Vn: Mrs. Fuentes C ure https e ) Gold & Sker Safeir ? Bigan

Question

xExam 3- ACCT 545 Sp Vn: Mrs. Fuentes C ure https e ) Gold & Sker Safeir ? Bigan Bracelet nFr @ Chesp Bigan Serpe m 4 The lowCarbist?Seyhgh h fotos co Aspire Lifestyles and Finding and Applyin: The Siher Telegram Flod Ha Help Save & 6 Mrs. Fuente, who has a 39.6% marginal tax rate on ordinary income, is the sole shareholder and CEO of Furey Inc. She also holds a $1 million interest-bearing note issued by Furey. The corporation's current-year financial records show the folowing: Sales revenue Mrs. Fuente's salary Other operating expenses Interest paid on Mrs. Fuente's note Dividend distributed to Mrs. Fuente $1,879,8ee (16e,eee) (414,ee0) (6e,000) (10e,e00) Compute Mrs. Fuente's tax on her income from Furey (Ignore payroll taxes in your calculations.) Multiple Choice $126720 $107120 $54.000

Explanation / Answer

SOLUTION

Tax - $107,120

Amount ($) Tax 39.6% on salary and interest {($160,000 + $60,000)*39.6%} 87,120 Tax 20% on dividend income ($100,000 * 20%) 20,000 Total tax 107,120

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