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Download Shering Distributors

Oct 8th, 2014
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  2. Download: http://solutionzip.com/downloads/shering-distributors/
  3. Interest versus dividend income During the year just ended, Shering Distributors,
  4. Inc., had pretax earnings from operations of $490,000. In addition, during the year
  5. it received $20,000 in income from interest on bonds it held in Zig Manufacturing
  6. and received $20,000 in income from dividends on its 5% common stock holding in
  7. Tank Industries, Inc. Shering is in the 40% tax bracket and is eligible for a 70% dividend
  8. exclusion on its Tank Industries stock.
  9. a. Calculate the firm’s tax on its operating earnings only.
  10. b. Find the tax and the after-tax amount attributable to the interest income from
  11. Zig Manufacturing bonds.
  12. c. Find the tax and the after-tax amount attributable to the dividend income from
  13. the Tank Industries, Inc., common stock.
  14. d. Compare, contrast, and discuss the after-tax amounts resulting from the interest
  15. income and dividend income calculated in parts b and c.
  16. e. What is the firm’s total tax liability for the year?
  17. Download: http://solutionzip.com/downloads/shering-distributors/
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