Dividend exclusion for taxes on dividends

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Question

Griffey Communications recently realized $75,000 in operating income. The company had interest income of $35,000 and realized $70,000 in dividend income. The company's interest expense was $55,000. 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.

Reference no: EM133272781

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