# Taxation and After-tax Earnings

Resuelve los problemas que se desglosan a continuación los cuales encontrarás al final del capítulo 1, páginas 36 a la 37:

1-5 Corporate taxes. Tantor Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods. During 2000 the firm earned \$92,500 before taxes.

a. Calculate the firm’s tax liability using the corporate tax rate schedule given in Table 3.4. b. How much is Tanto Supply’s 2000 after-tax earnings?c. What was the firm’s average tax rate, based on your findings in a? d. What is the firm’s marginal tax rate, based on your findings in a?

1-6 Average corporate tax rates. Using the corporate tax rate schedule given in Table 1.4, page 29, perform the following:

a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of corporate earnings before taxes: \$10,000; \$80,000; \$300,000; \$1.5 million; and \$15 million.

1-7 Marginal corporate tax rates. Using the corporate tax rate schedule given in Table 1.4 ,page 29, perform the following:

a. Find the marginal tax rate for the following levels of corporate earnings before taxes: \$15,000; \$90,000; \$200,000; \$1 million; and \$20 million.

1-9 Interest versus dividend expense. Michaels Corporation expects earnings before interest and taxes to be \$40,000 for this period. Assuming an ordinary tax rate of 40 percent, compute the firm’s earnings after taxes and earnings available for common stockholder’s (earnings after taxes and preferred stock dividends, if any) under the following conditions:

a. The firm pays \$10,000 in interest.b. The firm pays \$10,000 in preferred stock dividends.

1-10 Capital gains taxes. Perkings Manufacturing is considering the sale of two non-depreciable assets, X and Y, Asset X was purchased for \$2,000 and will be sold today for \$2,250. Asset Y was purchased for \$30,000 and will be sold today for \$35,000. The firm is subject to a 40% tax rate on capital gains.

a. Calculate the amount of capital gain, if any, realized on each of the assets. b. Calculate the tax on the sale of each asset.