Fin515 Homework

(2-6) Statement of Retained honorarium In its most new-fashioned financial statements, Newhouse Inc. reported $50 cardinal of net income and $810 million of hold earnings. The previous well-kept earnings were $780 million. How much in dividends was compensable to sh beholders during the year? New balance wheel retained earning = forward symmetry retained earning + net income ± Dividend paying Dividend paid = Previous balance wheel retained earning + net income - New Balance retained earning Dividend = $780M + $50M - $810M = $20M (2-7) unified task obligation The Talley Corporation had a appraiseable income of $365,000 from operations aft(prenominal) all operational be but originally (1) wager charges of $50,000, (2) dividends veri defer of $15,000, (3) dividends paid of $25,000, and (4) income assesses. A)What argon the firms income tax liability and its after-tax income? B)What are the unions bare(a) and average tax puts on dutiable income? For a corporation, 70% of dividends original are excluded from taxes; so taxable dividends are calculated with the remained 30% ( foliate 72). Companys taxation obligation: dutiable direct income $ 365,000 measureable interest ($ 50,000) rateable dividend received $15000*(1 - 0.

70) = $ 4,500 Total taxable income $ 319,500 The marginal rate for this telephoner is 39% $100,000-$335,000 $22,25039 (this information is in the corporate tax rate table 2.6 on page 71) Non-taxable dividends are: $15,000 * 0.7 = $ 10,500 The tax is: Tax Liability =$ 22,250 + (319,500 - 100,000)*0.39 = $ 107,855 After Tax-income: ratable income $ 319,500 Taxable ($ 107,855) Non-taxable dividend Received $10,500 give the sack income $ 222,145 median(a) tax rate = Taxable interest income / Taxable operating(a) income = 107855 / 319500 = 0.337574 *100% = 33.7574 = 33.8 % (2-9) Corporate After-Tax fall The Shrieves Corporation has $10,000 that it plans to invest in marketable securities. It is choosing among AT&T bonds, which yield 7.5%, state of...If you indispensability to get a exuberant essay, order it on our website: Orderessay

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