Corporate Taxes and Financial Statements QUIZBuiltrite had sales of $700,000 and COGS of $280,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $55,000 was realized during the year along with a capital loss of $70,000Based on the above information, answer the following 4 questions: Question 1What is Builtrite’s taxable income?
Question 2Based on their taxable income, what is Builtrite’s tax liability?
Question 3If we add to our problem that Builtrite also had $20,000 in interest expense, how much would this interest expense cost Builtrite after taxes?