Reliable Corporation had sales of $41,576,618 last year. Costs of goods sold amounted to 30% of sales, and cash operating expenses amounted to 20% of sales. Depreciation expense was $1,500,000. Reliable paid 8% interest on $20,000,000 in outstanding bonds. Also, Reliable sold 30,000 shares of Oviedo Company common stock for $75share. Reliable had purchased these shares two years ago for $30 a share. Reliable received $202,734 in dividend income for the year, and paid $547,052 in dividends to Reliable's common shareholders. Compute the firm's tax liability. SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN ROUND TO THE NEAREST WHOLE NUMBER AT THE END. DO NOT ENTER THE $ SIGN SYMBOL..i.e. if your answer is 1,000,000 enter it as 1,000,000.

Answer rating: 100% (QA)

Sales Less Cost of Good Sold Gross Profit Less Operating Exp Le... View the full answer