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.(2-6) Statement of Retained Earnings In its most recent monetary statements, Newhouse Inc. reported $50 billion of net income and $810 gazillion of keep network. The previous retain pay were $780 million. How much in dividends was remune treasured to sh beholders during the year? Dividend paid= introductory balance retained winnings + Net Income-New balance retained earnings Dividend paid = 780 million + $50 million - $810 million = $20 million in dividends was paid to shareholders during the year. (2-7) Corpo prize revenue Liability The T in alley throne had a measureable income of $365,000 from operations after all operating costs get out before (1) interest charges of $50,000, (2) dividends legitimate of $15,000, (3) dividends paid of $25,000, and (4) income tax income revenuees. What are the devoteds income tax liability and its after-tax income? What are the partys marginal and middling tax grades on ratable income? taxable income=$365,000 Interest charges= $50,000 Dividends current = $15,000 x (1-0.70) = $4,500 $365,000 - $50,000 + 4,500 = $319,500 Marginal identify (Corpo ordinate Tax Rate table, pg. 71) = 39% Income tax liability = $22,250 + (319,500-100,000) x0.39 =$107,855 After-tax income: nonexempt income = $319,000 Tax liability = $107,855 Non-Tax dividends reliable: $15,000 x (0.

70) = $10,500 After tax income = $319,000 107,855 + $10,500 = $222,145 Average tax account: Average tax rate = ratable interest income/Taxable operating income =$107,855/$319,500 =0.33757/4x0.100 =33.8% (2-9) Corporate After-Tax Yield The Shrieves lot has $10,000 that it plans to invest in sellable securities. It is choosing among AT&T bonds, which evidence 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 true are tax exempt. commence the after-tax rates of return on all three securities. AT&T bond = 7.5% * cardinal thousand = 0.075 * 10000 = $ 750 Taxes =...If you exigency to get a sound essay, regularize it on our website: Ordercustompaper.com

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