Fin515 Homework

(2-6) Statement of Retained Earnings In its most new-fashioned fiscal statements, Newhouse Inc. reported $50 zillion of net income and $810 million of well-kept earnings. The previous retained earnings were $780 million. How much in dividends was nonrecreational to sh beholders during the year? New counterpoise retained earning = forward fit retained earning + net income ± Dividend paid Dividend paid = Previous vestibular sense retained earning + net income - New Balance retained earning Dividend = $780M + $50M - $810M = $20M (2-7) incorpo set outd Tax obligation The Talley Corporation had a taxable income of $365,000 from operations after all operational costs but before (1) interest charges of $50,000, (2) dividends veri defer of $15,000, (3) dividends paid of $25,000, and (4) income taxes. A)What are the firms income tax liability and its after-tax income? B)What are the companys bare(a) and clean tax rates on taxable income? For a corporat ion, 70% of dividends received are excluded from taxes; so taxable dividends are deliberate with the remained 30% (page 72). Companys Tax obligation: assessable operating income $ 365,000 Taxable interest ($ 50,000) Taxable dividend received $15000*(1 - 0.

70) = $ 4,500 innate taxable income $ 319,500 The marginal rate for this company is 39% $100,000-$335,000 $22,25039 (this discipline 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 later Tax-income: Taxable income $ 319,500 T axable ($ 107,855) Non-taxable dividend Re! ceived $10,500 Net income $ 222,145 median(a) tax rate = Taxable interest income / Taxable operating income = 107855 / 319500 = 0.337574 *100% = 33.7574 = 33.8 % (2-9) incorporated After-Tax Yield 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 fate to get a full essay, order it on our website: BestEssayCheap.com

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