Problem:
The Wendt Corporation had 10.5 Million of taxable income.
a. What is the company's federal income tax bill for the year?
b. Assume the firm receives an additional one million of interest income from some bonds it owns. What is the tax of this income?
c. Now assume Wendt does not receive the interest income but does receive one million as dividends on some stock it owns. What is the tax on the dividend income?