Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 1. lintner beverage corp. reported the following i

1. Lintner Beverage Corp. reported the following information from their financial statements: ...

60.1K

Verified Solution

Question

Finance

1. Lintner Beverage Corp. reported the following information from their financial statements:

Operating income (EBIT) = $10,500,000
Interest payments on long-term debt = $1,750,000
Dividend income = $1,000,000

Calculate Lintner's total tax liability using the corporate tax schedule below:

Taxable Income Tax on Base of Bracket Percentage on Excess above Base
$0-$50,000 $0 15%
$50,000-$75,000 7,500 25
$75,000-$100,000 13,750 34
$100,000-$335,000 22,250 39
$335,000-$10,000,000 113,900 34
$10,000,000-$15,000,000 3,400,000 35
$15,000,000-$18,333,333 5,150,000 38
Over $18,333,333 6,416,667 35

Assume a 70% dividend exclusion for tax on dividends.

Select one:

a.$2,892,380

b.$3,692,400

c.$3,292,390

d.$2,738,530

e.$3,077,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Describe the major innovations, from earliest (most ancient) to most recent, that made plants progressively more...

Physics
1.2K views

A four-turn circular wire coil of radius 0.550 m lies in a plane perpendicular to a...

Advance Math
1.2K views

prove the following statement: If the augmented matrices of two linear systems are row equivalent, then...

Biology
1.2K views

What is the meaning of the Latin root'-sem-or-sim-in words such as dissemble or resemblance?A seemB...

Biology
1.2K views

What does the following dialogue reveal But the mayor incredulous shook his head You will...

Physics
1.2K views

A 1.00mH inductor and one 1.00?F capacitor are connected in series. The current in the...

Physics
1.2K views

The time average of the kinetic energy of one molecule of a MP PET 1992...

Statistics
1.2K views

Two bus companies run services between Los Angeles and San Francisco The mean journey times...

Algebra
1.2K views

A - the measure of the amplitude of the earthquake waveAo the amplitude of the...

Accounting
1.2K views

6. What was Unearned rent revenue at 1/1/8 ? A. $1,700...

Accounting
1.2K views

Jenna paid foreign income tax of $2,997 on foreign income of $14,986. Her worldwide taxable...

Accounting
1.2K views

The company is considering a new computer system that has an inital investment of $50,000....