The Talley Corporation had a taxable income of $485,000 from operations after al

Question

The Talley Corporation had a taxable income of $485,000 from operations after all operating costs but before (1) interest charges of $97,000, (2) dividends received of $29,100, (3) dividends paid of $38,800, and (4) income taxes. What are the firm's income tax liability and its after-tax income? Round your answers to the nearest cent. Income tax liability $ After-tax income $ What are the company's marginal and average tax rates on taxable income? (Hint: the average tax rate is the average rate paid on all income.) Round your answers to two decimal places. Marginal tax rate % Average tax rate %

Explanation / Answer

net taxable income = taxable income - interest charge + dividend received - dividend paid = 485000 - 97000 + 29100 - 38800 = 378300 income tax liability = 378300 * tax rate = 378300 * 28% = 105924 after tax income = 378300 - 105924 = 272376 please rate my answer! thanks in advance :)

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