Griffey Communications recently realized $115,000 in operating income. The company had interest income of $25,000 and re

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answerhappygod
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Griffey Communications recently realized $115,000 in operating income. The company had interest income of $25,000 and re

Post by answerhappygod »

Griffey Communications recently realized $115,000 in operating
income. The company had interest income of $25,000 and realized
$70,000 in dividend income. The company’s interest expense was
$45,000. Its corporate tax rate is 25%. Griffey is a small company,
so it is not subject to the interest expense deduction
limitation.
Assume a 50% dividend exclusion for taxes on dividends.
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