Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

It is 2017. The company you founded called Mineral Gells had earnings before tax of $100,000,000 this year (congratulations!). You are the companys sole owner.

It is 2017. The company you founded called Mineral Gells had earnings before tax of $100,000,000 this year (congratulations!). You are the companys sole owner. The corporate tax rate is 35%, you are in the 39.6% marginal bracket, and your dividends are taxed at 20%. Mineral Gells is an S-corporation and does a 50% distribution of income. How much do you personally have to pay in taxes, and what is your after-tax distribution of income?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internationale Rechnungslegung IFRS Praxis

Authors: Author

1st Edition

3834909289, 9783834909282

More Books

Students also viewed these Accounting questions

Question

Understand corporate and HRM strategy.

Answered: 1 week ago