Question Solved1 Answer The Dakota Corporation had a 2021 taxable income of $4,200,000 from operations after all operating costs but before (1) interest charges of $1.200.000 (2) dividends received of $94.000, (3) dividends paid of $660,000, and (4) income taxes (the firm's tax rate is 21 percent) .. Calculate Dakota's income tax Hability (Round your answer to the nearest dollar amount.) income tax liability b. What are Dakota's average and marginal tax rates on taxable income? (Round your newers to 2 decimal places.) Average tax rate Marginal tax rate

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Transcribed Image Text: The Dakota Corporation had a 2021 taxable income of $4,200,000 from operations after all operating costs but before (1) interest charges of $1.200.000 (2) dividends received of $94.000, (3) dividends paid of $660,000, and (4) income taxes (the firm's tax rate is 21 percent) .. Calculate Dakota's income tax Hability (Round your answer to the nearest dollar amount.) income tax liability b. What are Dakota's average and marginal tax rates on taxable income? (Round your newers to 2 decimal places.) Average tax rate Marginal tax rate
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Transcribed Image Text: The Dakota Corporation had a 2021 taxable income of $4,200,000 from operations after all operating costs but before (1) interest charges of $1.200.000 (2) dividends received of $94.000, (3) dividends paid of $660,000, and (4) income taxes (the firm's tax rate is 21 percent) .. Calculate Dakota's income tax Hability (Round your answer to the nearest dollar amount.) income tax liability b. What are Dakota's average and marginal tax rates on taxable income? (Round your newers to 2 decimal places.) Average tax rate Marginal tax rate
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Taxable income = $4,200,000   Interest charges = $1,200,000   Dividends received = $94,000   Dividends paid = $660,000   Taxable income after making the adjustments = Taxable income- Interest charges   =$4,200,000-$1,200,000 = $3,000,000   *Dividend paid is not a tax deductible expense as it is only a distribution of company's profits to shareholders after applicable taxes   *Di ... See the full answer