Keegan Company had operating income of $740,000 in 2010, received $120,000 in preferred stock dividends, $20,000 in interest income and paid $15,000 in interest expenses. What is the tax liability for Keegan?
A) $265,540
B) $294,100
C) $299,200
D) $270,640

Question

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Solution:
 11ea10f6_a128_66ce_b6b3_014ea775bbf2_TB2040_00 Tax = $781,000(0.34) = $265,540

Keegan Company Had Operating Income of $740,000 in 2010, Received