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i need full answers Exercise 1. You are a shareholder in a corporation. The corporation carns $20 per share before taxes. After it has paid
i need full answers
Exercise 1. You are a shareholder in a corporation. The corporation carns $20 per share before taxes. After it has paid taxes, it will distribute the rest of its camings to you as a dividend. The dividend is income to you, so you will then pay taxes on these earnings. The corporate tax rate is 35% and your tax rate on dividend income is 10% 1. Calculate the corporation carnings after taxes. 2. Calculate the tax amount on your dividend. 3. After paying taxes, what will be your earnings amount? 4. How much of the camnings remains after all taxes are paid? 5. Calculate the total effective tax rate Exercise 2. You are a sharcholder in a corporation. The corporation carns $20 per share before taxes, all carnings are distributed to you as a dividend. The dividend is income to you, so you will then pay taxes on these camnings. The tax rate on dividend income is 10% 1 1. Calculate the tax amount on your dividend. 2. After paying taxes, what will be your camnings amount? 3. Compare your results to the results of Exercise 1. Exercise 3. You are a sharcholder in a corporation. The comporation carns $15 per share before taxes. After it has paid taxes, it will distribute the rest of its camings to you as a dividend (we make this simplifying assumption but should note that most corporations retain some of their earnings for reinvestment). The dividend is income to you, so you will then pay taxes on these earnings. The corporate tax rate is 35% and your tax rate on dividend income is 20% 1. Calculate the corporation camnings after taxes. 2. Calculate the tax amount on your dividend. 3. After paying taxes, what will be your camnings amount? 4. How much of the earnings remains after all taxes are paid? 5. Calculate the total effective tax rate. Exercise 4. You are a shareholder in a corporation. The corporation carns $15 per share before taxes. All carnings are distributed to you as a dividend. The dividend is income to you, so you will then pay taxes on these carnings. Your tax rate on dividend income is 20% 1. Calculate the tax amount on your dividend. 2. After paying taxes, what will be your camnings amount 3. Compare your results to the results of Exercise 3 Exercise 4. You are a shareholder in a corporation. The corporation cams $8 per share before taxes. After it has paid taxes, it will distribute 65% of the earnings to you as a dividend. The dividend is income to you, so you will then pay taxes on these earnings The corporate tax rate is 40% and your tax rate on dividend income is 25%. 1. Calculate the corporation camnings after taxes. 2. Calculate the tax amount on your dividend. 3. After paying taxes, what will be your earnings amount? 4. How much of the earnings remains after all taxes are paid? 5. Calculate the total effective tax rate. 2 Exercise 5. You are a shareholder in a corporation. The corporation cams $8 per share before taxes. The corporation distribute 65% of the earnings to you as a dividend. The dividend is income to you, so you will then pay taxes on these earnings. Your tax rate on dividend income is 25%. 1 Calculate the tax amount on your dividend, 2. After paying taxes, what will be your camnings amount? 3. Compare your results to the results of Exercise 4 Step by Step Solution
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