Question
Company earned $230,000 of ordinary income during the year. In addition, they have a $3,000 long-term capital gain. The company is owned 100% by Joy.
Company earned $230,000 of ordinary income during the year. In addition, they have a $3,000 long-term capital gain. The company is owned 100% by Joy. During the year, the business distributed $12,000 in cash to Joy. Joy has an individual ordinary tax rate of 28% and a capital gains tax rate of 15%.
Assume the business is organized as a proprietorship. What is JOYS AFTER-TAX CASH FLOW from owning the business this year?
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
Financial Accounting An International Perspective
Authors: Arne Kinserdal
2nd Edition
0273631543, 978-0273631545
