Use the following information to answer the following question(s) .
In 2004,A & K,Inc.expects operating income (earnings before interest and taxes) of $18,000,000.In addition,the corporation has $20,000,000 of debt outstanding with a 10 percent interest rate and will pay $1,000,000 in dividends to its common stockholders.
-A & K's total tax liability for 2004 will be:
A) $5,488,250.
B) $5,530,000.
C) $5,600,000.
D) $6,080,000.
Correct Answer:
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