Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A business generates profits of $150,000. The owner currently has a 28% MTR. What is the total amount of taxes paid if the business is
A business generates profits of $150,000. The owner currently has a 28% MTR. What is the total amount of taxes paid if the business is a regular corporation and $20,000 in dividends is distributed to its sold individual shareholder?( The dividend tax rate on this individual shareholder is 15%)
A. Corporate tax, $33,950; individual tax, $5,600.
B. Corporate tax, $41,750; individual tax, $5,600.
C Corporate tax, $41,250; individual tax, $3,000.
D. Corporate tax, $0; individual tax, $42,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started