x
Info
x
Warning
x
Danger
 / 
 / 
 / 
An S corporation is a single tax company. An S Corporation earns $7.90

Question : An S corporation is a single tax company. An S Corporation earns $7.90 : 2419

An S corporation is a single tax company. An S Corporation earns $7.90 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the total amount of taxes paid if the company pays a 6 dividend?........ the question is asking for the total amount paid by the company or stockholder? If it is for company it should be $3.08, if it is stock holder it would it be $.090. I'm confused.... no matching answer, what am I doing wrong........I figured it out......Since the S corporation is not double taxed it is taxed at a non dividend income of 36% The answer would be $2.84 and it was correct on my homework....thanks anyways.

Solution
5 (1 Ratings )

Solved
Taxation 1 Year Ago 235 Views
This Question has Been Answered!
Unlimited Access Free
Explore More than 2 Million+
  • Textbook Solutions
  • Flashcards
  • Homework Answers
  • Documents
Signup for Instant Access!
Ask an Expert
Our Experts can answer your tough homework and study questions
22416 Taxation Questions Answered!
Post a Question