Suppose you are a shareholder in an S-corporation. The corporation earned $2.00 per share this past quarter and plans to pay out all earnings as dividends. If your personal tax rate on dividend income is 20%, what percentage of the earnings do you keep after paying taxes? LO4 You keep 100% of the earnings because S-corp owners do not owe personal taxes on the corporation's earnings. You keep 55% of the earnings after paying taxes. You keep 80% of the earnings after paying taxes. You keep 20% of the earnings after paying taxes.

Suppose you are a shareholder in an S-corporation. The corporation earned $2.00 per share this past quarter and plans to pay out all earnings as dividends. If your personal tax rate on dividend income is 20%, what percentage of the earnings do you keep after paying taxes? LO 4 You keep 100% of the earnings because S-corp owners do not owe personal taxes on the corporation's earnings. You keep 55% of the earnings after paying taxes. You keep 80% of the earnings after paying taxes. You keep 20% of the earnings after paying taxes