The Carolina Corporation Had a 2013 Taxable Income of $3,000,000

question 101

Multiple Choice

The Carolina Corporation had a 2013 taxable income of $3,000,000 from operations after all operating costs but before: (1) interest charges of $500,000,
(2) dividends received of $75,000,
(3) dividends paid of $1,000,000, and
(4) income taxes.Using the tax schedule in Table 2.3, what is Carolina's income tax liability?
What are Carolina's average and marginal tax rates on taxable income from operations?

• A)$857,650, 28.59%, 34%, respectively
• B)$875,500, 29.18%, 34%, respectively
• C)$875,500, 34.00%, 34%, respectively
• D)$1,020,000, 34.00%, 34%, respectively

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