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.(2-6) Statement of Retained Earnings In its most new financial statements, Newhouse Inc. reported $50 meg of net income and $810 jillion of maintained network. The previous carry earnings were $780 million. How much in dividends was stipendiary to shareholders during the year? Dividend compensable=Previous balance retained earnings + Net Income-New balance retained earnings Dividend gainful = 780 million + $50 million - $810 million = $20 million in dividends was paid to shareholders during the year. (2-7) Corpo prize Tax Liability The Talley ordure had a assessable income of $365,000 from operations after all operational costs except before (1) interest charges of $50,000, (2) dividends accredited of $15,000, (3) dividends paid of $25,000, and (4) income measure revenuees. What are the devoteds income levy financial obligation and its after-tax income? What are the companys marginal and average tax grades on ratable income? taxable income=$365,000 In terest charges= $50,000 Dividends received = $15,000 x (1-0.70) = $4,500 $365,000 - $50,000 + 4,500 = $319,500 Marginal come out (Corporate Tax Rate table, pg. 71) = 39% Income tax liability = $22,250 + (319,500-100,000) x0.39 =$107,855 After-tax income: Taxable income = $319,000 Tax liability = $107,855 Non-Tax dividends received: $15,000 x (0.

70) = $10,500 After tax income = $319,000 107,855 + $10,500 = $222,145 median(a) tax rate: Average tax rate = Taxable interest income/Taxable direct income =$107,855/$319,500 =0.33757/4x0.100 =33.8% (2-9) Corporate After-Tax Yield The Shrieves Corpora tion has $10,000 that it plans to invest in ! merchantable securities. It is choosing among AT&T bonds, which show 7.5%, state of Florida muni bonds, which yield 5% (but are not taxable), and AT&T preferred stock, with a dividend yield of 6%. Shrievess corporate tax rate is 35%, and 70% of the dividends received are tax exempt. give away the after-tax rates of return on all three securities. AT&T bond = 7.5% * ten thousand = 0.075 * 10000 = $ 750 Taxes =...If you desire to get a full essay, regularize it on our website: OrderCustomPaper.com

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