Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You own 100 shares of a Sub Chapter S corporation. The corporation earns $4.00 per share before taxes. Once the corporation has paid any corporate

You own 100 shares of a Sub Chapter "S" 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-divi dend) income is 30%, then how much money is left for you after all taxes have been paid?

$168

$300

$280

$240

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Gapenskis Cases In Healthcare Finance

Authors: George H. Pink

6th Edition

1567939651, 978-1567939651

More Books

Students also viewed these Finance questions

Question

What are the advantages of ID processes? Disadvantages?

Answered: 1 week ago

Question

What does amortization mean?

Answered: 1 week ago

Question

If A is a Boolean variable then A+0 is equivalent to

Answered: 1 week ago