Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pineapple, an individual, expects his U.S. based C corporation to generate a profit of $2,500,000. What is Pineapple's after-tax cash flow from the corporation if

image text in transcribed
Pineapple, an individual, expects his U.S. based C corporation to generate a profit of $2,500,000. What is Pineapple's after-tax cash flow from the corporation if net income after corporate tax is distributed to him as a dividend? Assume Pineapple's marginal tax rate on ordinary income is 37%, Pineapple's qualified dividend rate is 20%, and the corporate tax rate is 21%. o $1,127,350 $1,510,000 $1,580,000 $1.975,000

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

Step: 3

blur-text-image

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

Management Control Systems Performance Measurement Evaluation And Incentives

Authors: Kenneth Merchant, Wim Van Der Stede

3rd Edition

0273737619, 978-0273737612

More Books

Students also viewed these Accounting questions