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In the Current Year, DNS (A C Corporation) Had Taxable

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In the current year, DNS (a C corporation) had taxable income of $600,000 and distributed all of its after-tax earnings to Daniel, its sole shareholder. DNS's tax rate is 38 percent. Assuming Daniels's marginal tax rate on ordinary income is 28 percent and his dividend rate is 15 percent, what is the overall tax rate (combined corporate level and shareholder level) on DNS's $600,000 of taxable income?


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