Interest versus dividend income During the year just ended, $30,000 in income from interest on...
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Interest versus dividend income During the year just ended, $30,000 in income from interest on bonds i held in Zig Manufacturing and recelved $30,000 in income from dividends on its the 40% tax bracket and is eligible for a 70% didend edusion on its Tank industries stock a. Calculate the firm's tax on its operating earnings only b. Find the tax and the ater-tax amount attributable to the interest income from Zig Manufacturing bonds c. Find the tax and the after-tax amount attributable to the dividend income from the Tank Industries, Inc., common stock d. Compare, contrast, and discuss the after-tax amounts resulting from the interest income and dividend income calculated in parts b. and c. e. What is the firm's total tax liability for the year? year it 4% co on stock holdn n Ta k l dismes, i c S ings n a. The tax on operating earnings is s(Round to the nearest dolar) b. Complete the table below to compute the tax and the after-tax amount attributable to the interest income (Round to the nearest dollar.) Interest Income Before-tax amount Less: Applicable exclusion Taxable amount Tax (40%) , After-tax amount
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