"Consider a S corporation. The corporation earns $4.5 per share before taxes. The corporate tax...
70.2K
Verified Solution
Link Copied!
Question
Finance
"Consider a S corporation. The corporation earns $4.5 per share before taxes. The corporate tax rate is 28%, the tax rate on dividend income is 20%, and the personal income tax rate is set at 25%. What are the shareholder's earnings from the corporation after all corresponding taxes are paid? 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."
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
