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melomori [17]
4 years ago
7

You are a shareholder in an S corporation. The corporation earns $2 per share before taxes. Once it has paid any applicable taxe

s it will distribute the rest of its earnings to you as a dividend. The corporate tax rate is 50%, and the personal tax rate on income is 35%. How much is left for you after all taxes are paid?
Business
1 answer:
uysha [10]4 years ago
5 0

Answer:

From the $2 dollars of earnign per share

the stockholders will receive $1.30 dollars as only personal income tax will be levied.

Explanation:

The S corportation do not pay corporate taxes. The earnings once distributed to the owners are taxed at their personal tax.

In this case, 35% therefor after paying the taxes:

$2.00 x ( 1 - 35% ) = $ 1.30

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Answer:

Balance on balance on July 1 is $31490.67

Explanation:

given data

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solution

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amount = P × (1+\frac{r}{n})^{nt}     ...................1

put her value

amount = 27000 ×  (1+\frac{0.04}{365})^{(365\times \frac{40}{365})}  

amount = $27118.60

and

now we add here $4,200 in $27118.60 that will be

new principal P = $31318.60

and time t = 12 may to July 1 = 50 days

we get here amount that is put value in equation 1 we get

amount = $31318.60 ×  (1+\frac{0.04}{365})^{(365\times \frac{50}{365})}

solve it we get

amount = $31490.67

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