Julian is a shareholder in Big Bang Corporation. Big Bang has had an excellent year and declares $5,000 in dividends to its shareholders. Julian is elated because he can really use that $5,000. When Julian receives his dividend check, it will be in the amount of: $5,000 minus taxes, because the corporation pays no taxes on its profits; all taxes are paid by the shareholders when dividends are awarded. $5,000 minus taxes, because even though the corporation pays taxes on its profits, shareholders must also pay taxes on dividends. $5,000, because corporations pay an annual tax to do business in the state, and, therefore, shareholders are not taxed on their dividends. $5,000, because the corporation pays taxes on profits, and, therefore, shareholders do not have to pay taxes on dividends.