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A firm now operates as an S-corporation. The firm earns $658,428 per year before taxes and pays out all its earnings as dividends. Assume that
A firm now operates as an S-corporation. The firm earns $658,428 per year before taxes and pays out all its earnings as dividends. Assume that the corporate tax rate is 20 percent, and that the firm has only one owner who faces a personal income tax rate of 34 percent. What is the spendable income for the owner of the S-Corporation?
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