During the year just ended, Sherig Distributors, Inc had pretax earnings from operations of $487,000. In addition, during the year it received $26,000 in income from interest on bonds it held in Zig Manufacturing and received $26,000 in income from dividends on it's 4% common stock holding in Tank Industries, Inc. Sherig is in the 34% tax bracket and is eligible for a 70% dividend exclusion on it's Tank Industries stock.

a. calculate the firm's tax on it's operating earnings only

b. find the tax and the after tax amount attributable to the interest income from Zig Manufacturing bonds

c. find the tax and the after tax amount attributable to the dividend income from Tank Industries common stock

d. compare, contrast and discuss the after tax amounts resulting from the interest income and dividend income calculated in part b and c.

e. what is the firm's total tax liability for the year?