How much total taxable income did firm earn during the year

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Reston Enterprises, Inc had operating earnings of $ 280,000 for the year just ended. During the year, the firm sold stock that it held in another company for $180000, which was $ 30000 above its original purchase price of $150000 paid 1 year earlier.

Problem a. What is the amount, if any, of capital gain realized during the year?

Problem b. How much total taxable income did the firm earn during the year?

Problem c. Calculate the firm's total tax due.

Problem d. Calculate both the average tax rate and the marginal tax rate on the basis of your finding.

Reference no: EM132904668

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