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You own 100 shares of a C corporation. The corporation earns $4.00 per share before taxes. Once the corporation has paid any corporate taxes that
You own 100 shares of a "C" corporation. The corporation earns $4.00 per share before taxes. Once the corporation has paid any corporate taxes that are due, it will distribute the rest of its earnings to its shareholders in the form of a dividend. If the corporate tax rate is 40% and your personal tax rate on (both dividend and non-dividend) income is 30%, then how much money is left for you after all taxes have been paid?
$168
$260
$280
$400
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