Question
Rodger owns 100% of the shares in Trevor Inc., a C corporation. Assume the following for the current year: Trevor Inc.s pre-tax income = $16,000
Rodger owns 100% of the shares in Trevor Inc., a C corporation. Assume the following for the current year:
| Trevor Inc.s pre-tax income = $16,000 |
| Trevor Corps marginal tax rate = 35% |
| Percentage of after-tax earnings retained by Trevor Corp = 0% (i.e. all after-tax earnings distributed) |
| Rodgers dividend tax rate = 5% |
Given these assumptions, how much cash does Rodger have from the dividend after all taxes have been paid?
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Public Sector Accounting And Auditing In Europe The Challenge Of Harmonization
Authors: I. Brusca, E. Caperchione, S. Cohen, F Manes Rossi
2015th Edition
1137461330, 978-1137461339
