The Talley Corporation had a taxable income of $360,000 from operations after al

Question

The Talley Corporation had a taxable income of $360,000 from operations after all operating costs but before: (1) interest charges of $72,000, (2) dividends received of $10,800, (3) dividends paid of $25,200, and (4) income taxes.

What are the firm's income tax liability and its after-tax income? Round your answers to two decimal places.

What are the company's marginal and average tax rates on taxable income? Round your answers to two decimal places.

Income tax liability = $   After-tax income = $  

Explanation / Answer

Marginal Tax Rate = 39%

Average Tax Rate = 96834/291240 = 33.25%

Income after operating costs 360000 Less: Interest expense 72000 Plus: taxable dividend received 3240 only 30% are taxable' Taxable Income 291240

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