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Unit 2 Assignment
Unit 2 Assignment
b. Assume the firm receives an additional $1 million of interest from some bonds it owns. What is the tax on this interest income? Answer: $1,000,000.00 x 0.35 = $350,000.00 c. Now assume that Wendt does not receive the interest income but does receive an additional $1 million as dividends on some stock it owns. What is the tax on this dividend income? Answer: $1.000, 000.00 x 0.105 = $105, 000.00
Balance Sheet Cash AR Inventories Fixed assets Total assets Sales $27,000 $45,000 $90000 $138000 $300,000 $450,000 Accounts Payable Long-term debt Common Stock Retained Earnings Total liabilities & equity Cost of goods sold $90,000 $60,000 $52,500 $97,500 $300,000 $337,500