In 2020, Mango Inc

question 9

Multiple Choice

In 2020, Mango Inc.earned $150,000 of pre-tax income.The tax rate for the company is 13%.The sole shareholder received all of the net earnings in the form of a non-eligible dividend during the year.The shareholder has a personal tax rate of 50%.Supposing the shareholder is entitled to a total (federal + provincial) dividend tax credit equal to $20,000, what is the net personal tax liability on the dividend (ignoring all other tax implications) ? (Round all numbers to zero decimal places.)

• A)$19,500
• B)$20,000
• C)$55,038
• D)$75,038

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Definitions:

Direct Labor Cost

The total cost of wages for labor directly involved in the production of goods or services.

Direct Labor Wage Rate

The rate of pay for workers who are directly involved in the production of goods or the provision of services.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.

Selling and Admin. Expense

Costs that are not directly tied to the production of goods or services but are necessary for selling products and managing the business.