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Assume that Josie forms JES as a C-Corporation. JES earns a taxable income of $300,000. JES will distribute 40% of its after-tax earnings annually as
Assume that Josie forms JES as a C-Corporation.
- JES earns a taxable income of $300,000.
- JES will distribute 40% of its after-tax earnings annually as a dividend.
- Josie’s marginal ordinary tax rate is 37% and her dividend tax rate is 23.8% (including the net investment income tax).
What is the overall tax rate on JES’s taxable income?
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Ethics in Accounting A Decision Making Approach
Authors: Gordon Klein
1st edition
1118928334, 978-1118928332
