Your corporation has a marginal tax rate of 40 and has purchased preferred stock in another company The before tax dividend income on the preferred stock is $1000 What is the company 's after tax dividend income on the preferred, assuming a 70 dividend exclusion a $700 b $880 c $720 d $1000 ...

Since dividend before tax is 1000 we have 100040 400 which has to b ...

Your corporation has a marginal tax rate of 40% and has purchased preferred stock in another company.

Question:

Your has a marginal tax rate of 40% and has purchased preferred stock in another company. The before-tax income on the preferred stock is $1000. What is the company's after-tax income on the preferred, assuming a 70% exclusion?
a. $700
b. $880
c. $720
d. $1000
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...