Question
Jay owns 100% of Kaye Company. Assume that Jay, an individual, has $100,000 of taxable income (excluding any income associated with Kaye Company); therefore his
Jay owns 100% of Kaye Company.
Assume that Jay, an individual, has $100,000 of taxable income (excluding any income associated with Kaye Company); therefore his marginal rate of taxation is 24%. Jay has no recognized capital gains or losses in 2018.
Assume that Kaye Company is a corporation and distributes $50,000 cash to Jay as a dividend.
How much tax must Jay pay on this $50,000 dividend?
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Financial Accounting Version 3.0
Authors: Leah Kratz, Joe Ben Hoyle, C. J. Skender
3rd Edition
1453392904, 9781453392904
