Assume that the Provident Health System, a for-profit hospital, has $1 million in taxable income for 2008,

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Question:

Assume that the Provident Health System, a for-profit hospital, has $1 million in taxable income for 2008, and its tax rate is 30 percent.

A. Given this information, what is the firm's net income?

B. Suppose that the hospital pays out $300,000 in dividends. A stockholder, Carl Johnson, receives $10,000. If Carl's tax rate on dividends is 15%, what is his after-tax dividend?

Income statement of an organization gives the revenues earned during a period expenses incurred to earn the revenue and the net income after payment of taxes.