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Accounting

Problem:

The Dana Flatt Corporation had sales of $2 million this past year. Its COGS was $1.2 million and its operating expenses were $400,000. Interest expenses on outstanding debt were $164,000 and the company paid $40,000 in stock dividends. Its tax rate is 34%.

Required:

Quesiton: What was the company's taxable income and tax liability (taxes paid).

A. $236,000, $80,240

B. $196,000, $66,640

C. $236,000, $155,760

D. $196,000, $129,360

E. $400,000, $136,000

Note: Provide support for your rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91173168

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