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How much total taxable income did the firm earn

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Reference no: EM132581976

Montgomery Enterprises, Inc., had operating earnings of $280,000 for the year end.

During the year, the firm sold stock that is held in another company for $180,000, which was $30,000 above its original purchase price of $150,000, paid 1 year earlier.

Question a) What is the amount, if any, of capital gains realized during the year?

Question b) How much total taxable income did the firm earn during the year?

Question c) What were the firm's total taxes due? Use the 39% tax rate.

Question d) Calculate the average tax rate.

Reference no: EM132581976

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