Suppose that in addition to $17.85 million of taxable income, Texas Taco, Inc., received $1,105,000 of interest

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Suppose that in addition to $17.85 million of taxable income, Texas Taco, Inc., received $1,105,000 of interest on state-issued bonds and $760,000 of dividends on common stock it owns in ArizonaTaco, Inc. 

a. Calculate Texas Taco’s income tax liability. 

b. What are Texas Taco’s average and marginal tax rates on taxable income?

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Finance Applications And Theory

ISBN: 9781260013986

5th Edition

Authors: Marcia Cornett, Troy Adair, John Nofsinger

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