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You are the shareholder of a corporation that just received Subchapter S designation Suppose the corporation earns $20/share this year and you hold 100 shares.

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You are the shareholder of a corporation that just received Subchapter S designation Suppose the corporation earns $20/share this year and you hold 100 shares. The corporate income tax rate is 21% and you fall into the 32% personal income tax bracket. (A) how much taxes will you pay this year on the corporation's earnings? (B) Next year, when the corporation distributes a $10/share dividend, how much taxes will you pay on the dividend income you receive

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