1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Firdavs [7]
3 years ago
13

he Talley Corporation had a taxable income of $345,000 from operations after all operating costs but before (1) interest charges

of $69,000, (2) dividends received of $17,250, (3) dividends paid of $20,700, and (4) income taxes.What are the firm's income tax liability and its after-tax income
Business
1 answer:
Setler79 [48]3 years ago
3 0

Answer:

(a) The firm's Income tax liability is $59,771.25.

(b) The firm's after-tax income is $233,478.75.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows

The Talley Corporation had a taxable income of $345,000 from operations after all operating costs but before (1) interest charges of $69,000, (2) dividends received of $17,250, (3) dividends paid of $20,700, and (4) income taxes. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall 50% of dividends received are tax exempt. What are the firm's income tax liability and its after-tax income?

The explanation to the anwer is now given as follows:

Adjusted taxable income = Income after operation - Interest charges + Taxable dividend received ................. (1)

Where;

Income after operation = $345,0000

Interest charges = $69,000

Taxable dividend received = 50% * $17,250 = $8,625

Substituting the values into equation (1), we have:

Adjusted taxable income = $345,000 - $69,000 + $8,625 = $284,625

(a) Income tax liability = Adjusted taxable income *  Tax rate = $284,625 * 21% = $59,771.25

(b) After-tax income = (Adjusted taxable income - Income tax liability) + (50% of dividend received) = ($284,625 - $59,771.25) +  (50% * $17,250) = $224,853.75 + $8,625 = $233,478.75

You might be interested in
On June 30, Collins Management Company purchased land for $460,000 and a building for $520,000, paying $360,000 cash and issuing
sammy [17]

Answer:

See Explanation

Explanation:

(a)

Journal entry to record the transaction is,

Particulars                                                                  Debit      Credit

Land and Building (460000 + 520000)                 $980,000

Cash Paid                                                                           $360,000

Mortgage Payable (980,000 - 360,000)                         $620,000

We assume that 4% interest is chargeable each semiannual payment and that each subsequent payment is charged 4% on the remaining amount of principal minus any preceding principal payments.

(b)

First installment = Principal + Interest payable

= 31,000 + (620,000 * 0.04) = $55,800

(c)

Second payment = 31,000 + [(620,000 - 31000) * 0.04] = $54,560

Since the chart of accounts is not provided you can confirm the the account headings.

Hope that helps.

5 0
3 years ago
The Tuck Shop began the current month with inventory costing $19,000, then purchased inventory at a cost of $52,950. The perpetu
DaniilM [7]

Answer:

Inventory shrinkage = $1,322

Explanation:

We know,

Inventory shrinkage = Ending inventory - Actual inventory at hand

Given,

Actual inventory at hand = $13,500

Ending inventory = Beginning inventory + Purchase - Inventory sold(Costing price)

Or, Ending inventory = $19,000 + $52,950 - $57,128

Or, Ending inventory = $71,950 - $57,128

Or, Ending inventory = $14,822

Therefore,

Inventory shrinkage = Ending inventory - Actual inventory at hand

Or, Inventory shrinkage = $14,822 - $13,500

Or, Inventory shrinkage = $1,322

5 0
3 years ago
Claire wanted to tell her employees about the seminar, but she put the flier in a stack of papers and forgot about it until afte
neonofarm [45]

Claire wanted to tell her employees about the seminar, but she put the flier in a stack of papers and forgot about it until after the deadline, so none of her employees were able to sign up for the seminar. What type of barrier has occurred in this situation?

The barrier to communication that occurred in this situation is sender barrier.

A communication barrier is anything that prevents someone from receiving and understanding messages including information, ideas and thoughts. Since Claire did not let her employees know about the seminar, they had no way to know that the seminar was going on and that they were able to attend.  There was no information given from Claire, who was suppossed to be the sender of the information for her team.

6 0
3 years ago
You invest all the money you earned during your summer sales job (a total of $45,000) into the stock of a company that produces
erica [24]

Answer:

The annual rate of return of the invesment will be -14,97%

Explanation:

The initial investment is 45.000 and after 5 years the value of the investment is only 20.000. Here we can see a destruction of value (20.000 < 45.000). In finance, the time takes an essential part in calculation, so through the interest rate we calculated how bad was the investment in annual terms. The formula is as follows: Final investment value=(Initial investment*(1+interest rate)^(total years)) in our case would be: 20.000=(45.000*(1+interest rate)^(5)) From this formula we got -14,97%

8 0
3 years ago
The ______technique for group decision making in which discussion is structured and the final solution is decided by silent vote
alukav5142 [94]

Answer:

The correct answer is nominal group technique.

Explanation:

This nominal group technique is a type of brain storming where structured meetings are being held among the members, where they will try to take out the solutions to the problems identified by them, and thus facilitating decision making. The meetings are structured here because the goal is to make sure the meetings are not dominated by few individuals and the silent members also share their thoughts and ideas with the rest of the group.

5 0
3 years ago
Other questions:
  • Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2015, 125 share
    7·1 answer
  • Natasha and sergio want to prevent their daughter from contracting a specific sti, so they arrange for her to receive a vaccinat
    6·2 answers
  • A store that sells a huge variety of one type of product such as books, in order to dominate that category is called a category
    14·1 answer
  • A comprehensive or overall formal plan for a business that includes specific plans for expected sales, the units of product to b
    12·1 answer
  • Between October 2014 and October 2015, the CPI in Canada rose from 120 to 124 and the CPI in Mexico rose from 210 to 229.1. What
    7·1 answer
  • A difference between Maslow's need hierarchy and Alderfer's ERG theory is that
    12·1 answer
  • Something that encourages specific behavior
    15·2 answers
  • You are a manager at Baroque Space, a costume design company. Recently, your boss asked you to hire a new seamstress. You are no
    13·1 answer
  • Explain fayols 14 principle of management in any organization
    5·1 answer
  • Wich situation would cause the price of a product to fall the most
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!