50.1K

Verified Solution

Link Copied!

6,7 and 8

"Consider a C corporation. The corporation earns $1.5 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 35% of its earnings to its shareholders as a dividend. The corporate tax rate is 35%, the tax rate on dividend income is 29%, and the personal income tax rate is set at 29%. How much is the total effective tax rate on the corporation earnings? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer: or if the answer is $500, write enter 500 as an answer." QUESTION 7 "Consider a S corporation. The corporation earns $2.5 per share before taxes. The corporate tax rate is 30%, the tax rate on dividend income is 15%, and the personal income tax rate is set at 20%. What are the shareholder's earnings from the corporation after all corresponding taxes are paid? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer; or if the answer is $500, write enter 500 as an answer." QUESTION 8 "Consider a S corporation. The corporation earns $2.5 per share before taxes. The corporate tax rate is 35%, the tax rate on dividend income is 20%, and the personal income tax rate is set at 20%. How much is the total effective tax rate on the corporation earnings? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer: or if the answer is $500, write enter 500 as an

Answer & Explanation Solved by verified expert

See Answer