The Dakota Corporation had a 2015 taxable income of $29,000,000 from operations after all operating costs but before (1) interest charges of $8,900,000; (2) dividends received of $820,000; (3) dividends paid of $5,600,000; and (4) income taxes.
a. Use the tax schedule in Table 2.3 to calculate Dakota’s income tax liability. (Round your answer to the nearest dollar amount.)
Taxable income over 18,333,333 - base income 6,416,667 and overbase at 35%
Income tax liability $