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Charleston Corporation ( CC ) now operates as a regular corporation, but it is considering a switch to S Corporation status. CC is owned by
Charleston Corporation CC now operates as a "regular" corporation, but it is considering a switch to S Corporation status. CC is owned by stockholders who each hold of the stock, and each faces a personal tax rate of The firm earns $ per year before taxes, and since it has no need for retained earnings, it pays out all of its earnings as dividends. Assume that the corporate tax rate is and the personal tax rate is How much more or less spendable income would each stockholder have if the firm elected S Corporation status?a$b$c$d$e$
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