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  3. a business generates profits of $150,000. the owne

A business generates profits of $150,000. The owner currently has a 32% marginal tax rate....

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Accounting

A business generates profits of $150,000. The owner currently has a 32% marginal tax rate. What is the total amount of taxes paid if the business is a regular corporation and $20,000 in dividends is distributed to its sold individual shareholder?

Multiple Choice

Corporate tax, $31,500; individual tax, $3,000

Corporate tax, $48,000; individual tax, $6,400

Corporate tax, $31,500; individual tax, $6,400

Corporate tax, $0; Individual tax, $48,000

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