You are running a partnership company with one of your colleage. At the end of yr1, you earn a profit of $ 70,000, and it is decided to keep 60% as reinvestment.

(a) How much dividend you can get after tax? The corporate tax rate is 30% and individual income tax rate is 15%

(b) Your friend has a 1-year bank loan of $ 60,000 for the operation of the office at the beginning of yr2. The net profits of yr2 are $30,000. How much liabilities you have to undertake for the bank loan?