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Corporate Finance

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Calculating Tax Liabilities

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Alpha Corp. has sales of \$3,000,000; cost of goods sold is \$1,425,000; and its total operating expenses are \$700,000. The firm's interest expense is \$230,000, and the corporate tax rate is 40%.

​What is Alpha Corp's tax liability?

A

$258,000

B

$350,000

C

$645,000

D

$875,000