End of Chapter Problem page 48 Question 2.1: Assume the provident health system, a for-profit hospital, has $1 million in taxable income for 2012, and its tax rate is 0 percent. A. Given this information, what is the firm's net income? (Net income is what remains after taxes have been paid out.) B. Suppose the hospital pays out $300,000 in dividends. A stockholder, Carl Johnson, receives $10,000. If Carl's tax rate on dividends is 15 percent, what is this after-tax dividends? Insert your response here. A. B End of Chapter Problem page 52 Question 2.2: A firm that owns the stock of another corporation does not have to pay taxes on the entire amount of dividends received. In general, on corporation from another are taxable. The reason for this tax law feature is to mitigate the effect of triple taxation, which occurs when ear the second firm are taxed again, and the dividends paid to stockholders by the second firm are taxed yet again. Assume that a firm with a 35 percent tax rate receives $100,000in dividends from another corporation. What taxes must be paid on this dividends, and what is the after tax amount of the 30 percent of the dividends received by one are first taxed at the first firm, its dividends paid to Insert your response here