Griffey Communications recently realized $115,000 in operating income. The company had interest income of $35,000 and realized
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Griffey Communications recently realized $115,000 in operating income. The company had interest income of $35,000 and realized $70,000 in dividend income. The company’s interest expense was $45,000. Its corporate tax rate is 25%. Griffey is a small company, so it is not subject to the interest expense deduction limitation. Assume a 50% dividend exclusion for taxes on dividends.
What is Griffey Communications' tax liability?
Related Book For
Intermediate Accounting 2014 FASB Update
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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