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kotykmax [81]
3 years ago
7

You are a shareholder in a C corporation. The corporation earns $1.75 per share before taxes. Once it has paid its taxes it will

distribute the rest of the earnings to you as a dividend. Assume the corporation tax rate is 35% and the personal tax rate on (both dividend and non-dividend) income is 30%. How much is left for you after all taxes are paid
Business
1 answer:
diamong [38]3 years ago
7 0

Answer:

$0.80.

Explanation:

We can find the remaining amount earned by just dedcuting he income tax. The corporation tax will be deducted from the earnings before tax at the rate of 35% and the personal tax will be deducted from the dividends distributed at the rate of 30%.

                                                                          $

Earnings before taxes                                   1.75

Dividend distributed                                    $1.1375

less:

Corporate tax ($1.75*35%)                          (0.6125)

Personal tax (1.1375 X 30%)                       (0.34125)

Amount remaining                                       $0.80.

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balu736 [363]

Answer:  $47 million

Explanation:

Pension expense arises as a result of the amounts owed to employees in relation to pension liabilities.

It is calculated by;

= Service Cost + Interest expense - Expected return on plan assets +  Amortization of prior service cost + Amortization of net loss

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7 0
3 years ago
What is dumping?
pychu [463]
Dumping is exporting goods at prices that are lower than their value.
4 0
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Explain what a cash budget is and why it is important for all businesses.
deff fn [24]

Answer:

A cash budget is very important, especially for smaller companies. It allows a company to establish the amount of credit that it can extend to customers without having problems with liquidity. A cash budget helps avoid a shortage of cash during periods in which a company encounters a high number of expenses.

Explanation:

4 0
3 years ago
Dave's marketing research returned the finding that customers were staying away from his bookstore because of a lack of services
-BARSIC- [3]

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Explanation:

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According to the given question, Dave is basically suffering from the knowledge gap as Dave is unaware about the fact that why people are satisfying away from his store.

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6 0
3 years ago
Cullumber Corporation had 2020 net income of $1,098,000. During 2020, Cullumber paid a dividend of $2 per share on 265,500 share
Daniel [21]

Answer:

EPS=$3

Explanation:

Net income =1,098,000

Dividend on preferred stock=2*265,500=$531,000

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EPS= (Net income-preferred dividends)/Weighted Average share outstanding

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7 0
3 years ago
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