In this problem , what figures do I use to calculate after tax income?
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.
First you have to calculate the taxable income on which tax can be charged for which calculation is as follows:- Income... View the full answer
- Thank you . What figures do I use to determine the average tax based on taxable income?
- Nov 03, 2018 at 5:09pm
- Average tax rate can be calculated as: Tax liability calculated by you on the above figure / Taxable Income i.e.$319,500. So Average tax rate = Tax Liability / $319,500
- Nov 04, 2018 at 1:27am