Charleston Corporation (CC) Now Operates as a "Regular" Corporation, but It

question 54

Multiple Choice

Charleston Corporation (CC) now operates as a "regular" corporation, but it is considering a switch to S Corporation status. CC is owned by five stockholders who each hold 20% of the stock, and each faces a personal tax rate of 35%. The firm earns $2,000,000 per year before taxes, and since it has no need for retained earnings, it pays out all of its earnings as dividends. Assume that the corporate tax rate is 34% and the personal tax rate is 35%. How much more (or less) spendable income would each stockholder have if the firm elected S Corporation status?

• A) $86,632
• B) $88,400
• C) $90,168
• D) $91,971
• E) $93,811

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Definitions:

External Human Resource Sources

Refers to methods of filling job vacancies or acquiring talent from outside the organization, including recruitment agencies, job boards, and social media.

Licensed Practical Nurses

Nurses who have completed the necessary training and have obtained a license to provide basic medical care under the supervision of registered nurses or doctors.

PHC's Workforce

The personnel or employees working within Primary Health Care settings, contributing to community health services.

External Human Resource Sources

The methods and locations outside of the organization where potential job candidates can be found, such as job fairs, online job portals, and recruitment agencies.