Corporate Taxes and Financial Statements Quiz - Builtritehadsalesof$700,000andCOGSof$280,000.Inaddition, calculatedat25%ofsales.$40,000andpaidoutcommon

Corporate Taxes and Financial Statements Quiz -...

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QUIZ - Corporate Taxes and Financial Statements Builtrite 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 $70,000. Based on the above information, answer  the following 4 questions:  Question 1: What is Builtrite’s taxable income? A: $257,000 Question 2: Based on their taxable income, what is Builtrite’s tax liability? A: $83,480 Question 3: If we add to our problem that Builtrite also had $20,000 in interest expense, how  much would this interest expense cost Builtrite after taxes?
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  • Fall '14
  • Garrett
  • Builtrite, long­term capital loss

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