Your Corporation Has the Following Cash Flows

question 43

Multiple Choice

Your corporation has the following cash flows:
Operating income :$250,000
Interest received:10,000
Interest paid:45,000
Dividends received:20,000
Dividends paid:50,000
If the applicable income tax rate is 40 percent,and if 70 percent of dividends received are exempt from taxes,what is the corporation's tax liability?

• A) $74,000
• B) $88,400
• C) $91,600
• D) $100,000
• E) $106,500

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Definitions:

Scientist

A professional engaged in systematic activity to acquire knowledge that describes and predicts the natural world.

Cognitive Therapies

A category of psychotherapeutic treatments that aim to change maladaptive thinking patterns to improve mood and behavior.

Placebo

A placebo is an inert substance or treatment given to a participant in a study, used to compare the effects of actual treatments by accounting for the placebo effect.

Maintenance Over Time

The continuous effort required to preserve the status or condition of something, or the effectiveness of an intervention or therapy over a prolonged period.