BA350 Financial Management: 2-7 (Corporate Liability) The Talley Corporation has taxable income

BA350 Financial Management

2-7 Corporate Tax Liability
The Talley Corporation had a taxable income of $365,000 from operations after all operating costs but before (1) interest charges of $50,000, (2) dividends received of $15,000, (3) dividends paid of $25,000, and (4) income taxes.
1. What are the firm’s income tax liability and its after-tax income?
2. What are the company’s marginal and average tax rates on taxable income?
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