Bryan Houlberg Expects His C Corporation to Generate a Profit

question 94

Multiple Choice

Bryan Houlberg expects his C corporation to generate a profit of $200,000. What is the effective tax rate on the $200,000 if net income after corporate tax is distributed to him as a dividend and his marginal tax rate on ordinary income is 35%?

• A) 35%
• B) 57.43%
• C) 41.03%
• D) 39%

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Definitions:

Television

A system for transmitting visual images and sound that are reproduced on screens, primarily used for entertainment, news, and education.

Food Ingested

The act of consuming food substances for nutritional support of the body.

Unsanitary

Conditions that are not clean or hygienic, potentially leading to disease and ill health.

Breast Feeding

The process whereby an infant is nursed with milk straight from the mother's breasts, offering both nourishment and immune protection.