2-6 In its most recent fiscal statements, Newhouse Inc. reported $50 trillion of lolly income and $810 million of retained earnings. The previous retained earnings were $780 million. How much in dividends was stipendiary to sh arholders during the year?
Dividend paid = Previous Balance retained earning + net income - Recent retained earning Dividend = $780 million + $50 million - $810 million= $830 million - $810 million= $20 million dividends paid.
2-7 The Talley throne had a tax revenueable income of $365,000 from operations after all operating be but before (1) interest charges of $50,000, (2) dividends received of $15,000, (3)dividends paid of $25,000, and (4) income taxes. What are the firms income tax liability and its after-tax income? What are the political partys marginal and average tax rates on taxable income?
According to page 72 of our book, for a corporation, 70% of dividends received are excluded from taxes; so taxable dividends are compute with the remained 30%.
ratable operating income $ 365,000
taxable interest ($ 50,000)
dutiable dividend received $4,500
15,000*(1 - 0.70) = Total taxable income$ 319,500
The marginal rate for this society is 39% (found on page 71)
The 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:
Taxable income $ 319,500 Taxable ($ 107855)
Non-taxable dividend Received 15000*(0.70) $ 10,500
sort out income $ 222,145
Average tax rate = Taxable interest income / Taxable operating income= 107855 / 319500 = 0.337574 *100%= 33.7574 = 33.76 %Average tax rate is 33.8 %
2.9 The Shrieves Corporation has $10,000 that it plans to invest in marketable securities. It is choosing among AT&T bonds, which egress 7.5%, state of Florida muni bonds, which yield5% (but are not taxable), and AT&T prefer stock, with a dividend yield of 6%. Shrievess corporate tax rate is 35%, and 70% of the dividends received are tax...If you loss to get a full essay, order it on our website: Orderessay
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