Answer:
Purple Corporation's after-tax income is $158,000 and Kirsten's after tax income is $136,100.
Explanation:
some information was missing, so I looked it up:
- Purple Corporation's income = $200,000
- corporate tax rate = 21%
- Kristen claims standard deduction $12,000
Purple's corporate tax liability = $200,000 x 21% = $42,000
Purple's after tax income = ($200,000 - $42,000) = $158,000
Since Kristen's taxable income is $146,000 (qualified dividends are included in AGI but taxed at different rate), her tax rate will be 15%. Kristen's after tax income = $$158,000 - (146,000 x 15%) = $136,100
