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Business, 21.02.2020 02:20 volleyballfun24

During the year just ended, Shering Distributors, Inc., had pretax earnings from operations of $490,000. In addition, during the year it received $20,000 in income from interest on bonds it help in Zig Manufacturing and received $20,000 in income from dividends on its 5% common stock holding in Tank Industries, Inc. Shering is in the 40% tax bracket and is eligible for a 70% dividend exclusion on its Tank Industries stock. A. Calculate the firm's tax on its operating earnings only. B. Find the tax and after-tax amount attributable to dividend and interest income.

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During the year just ended, Shering Distributors, Inc., had pretax earnings from operations of $490,...
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