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If a corporation had earnings of $40,000 and paid all of this out as a dividend to the owner, how much tax would be paid
If a corporation had earnings of $40,000 and paid all of this out as a dividend to the owner, how much tax would be paid directly by the owners of the corporation? Assume a 20% federal income tax rate and a 15% dividend tax rate.
A.8000
B.12,800
C.4800
D.6000
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