Bryan Houlberg Expects His C Corporation to Generate a Profit

question 6

Multiple Choice

Bryan Houlberg expects his C corporation to generate a profit of $200,000. What is Bryan's after-tax cash flow from the corporation if net income after corporate tax is distributed to him as a dividend and his marginal tax rate on ordinary income is 37%?

• A) $120,800
• B) $90,188
• C) $126,400
• D) $158,000

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Definitions:

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