Question
Mary lives under a classical tax system. Her income tax rate is 45%, which applies to both wages and dividend income. Mary owns 5% of
Mary lives under a classical tax system. Her income tax rate is 45%, which applies to both wages and dividend income. Mary owns 5% of Pinder Co. Pinder Co had taxable income of $15,000 and paid $4,500 as corporate income taxes. Pinder Co’s after-tax profits were fully paid out as dividends. If Mary had lived under the imputation tax system, what would be Mary’s tax savings? (Round to the nearest two digits)
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Principles of Accounting
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
12th edition
978-1133603054, 113362698X, 9781285607047, 113360305X, 978-1133626985
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