Response to the following problem:
In 2000, NI Corporation had sales of $1 million, cost of goods sold of $600,000, and depreciation of $100,000. The corporation received $200,000 in dividends, paid $100,000 in dividends, and bought equipment for $300,000. Its tax rate was 30%, and the dividends-received deduction was 80%.
a. What was the taxable income of NI Corporation?
b. How much must NI pay in taxes?