P2–2 Average corporate tax rates Using the corporate tax rate schedule given in Table 2.1, perform the following:1. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of corporate earnings before taxes: $10,000; $80,000; $300,000; $500,000; $1.5 million; $10 million; and $20 million.P2–5 Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $50,000 for the current period. Assuming an ordinary tax rate of 35%, compute the firm’s earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions:1. The firm pays $12,000 in interest.2. The firm pays $12,000 in preferred stock dividends.P2–6 Capital gains taxes Perkins Manufacturing is considering the sale of two nondepreciable assets, X and Y. Asset X was purchased for $2,000 and will be sold today for $2,250. Asset Y was purchased for $30,000 and will be sold today for $35,000. The firm is subject to a 40% tax rate on capital gains.1. Calculate the amount of capital gain, if any, realized on each of the assets.2. Calculate the tax on the sale of each asset.P2–7 Capital gains taxes As part of its operations, Ferguson’s Plumbing has bought and sold several nondepreciable capital assets. The purchase and sale prices for these assets are contained in the following table. Assuming that Fergurson’s pays a 40% capital gains tax, complete the table by filling in the last two columns. Asset Sale pricePurchase price Capital gain Tax A $ 3,400$ 3,000 B 12,000 12,000 C 80,000 62,000 D 45,000 41,000 E 18,000 16,500 P2–8 ETHICS PROBLEM The Securities Exchange Act of 1934 limits, but does not prohibit, corporate insiders from trading in their own firm’s shares. What ethical issues might arise when a corporate insider wants to buy or sell shares in the firm where he or she works?
Please do this assignment by Saturday April 6, 2019 at 8AM. Please show all you work to each of the following problem and please write in basic ENglish as I am an international student. Do not do any outside research. Only if your know math or finance so you can solve the 5 problems above.