Response to the following problem:
The Talley Corporation had a taxable income of $365,000 from operations after all operating costs but before
(1) interest charges of $50,000,
(2) dividends received of $15,000,
(3) dividends paid of $25,000, and
(4) income taxes.
What is the firm's income tax liability and its after-tax income? What are the company's marginal and average tax rates on taxable income?