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You are a shareholder in a corporation which has elected subchapter S tax treatment. The corporation announces a profit of $8 per share, of which
You are a shareholder in a corporation which has elected subchapter S tax treatment. The corporation announces a profit of $8 per share, of which it retains $2 for reinvestment and distributes the rest as dividend payments. Given that the personal tax rate is 25%, how much tax must you pay per share? $1.50 $2.00 $1.25 $1.75
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