You Own 100 Shares of a "C" Corporation

question 5

Multiple Choice

You own 100 shares of a "C" Corporation.The corporation earns $5.00 per share before taxes.Once the corporation has paid any corporate taxes that are due,it will distribute the rest of its earnings to its shareholders in the form of a dividend.If the corporate tax rate is 40% and your personal tax rate on (both dividend and non-dividend) income is 30%,then how much money is left for you after all taxes have been paid?

• A) $210
• B) $300
• C) $350
• D) $500

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Definitions:

Deltoid

A large, triangular-shaped muscle that covers the glenohumeral joint and gives the shoulder its rounded shape, responsible for arm abduction.

Pronator Teres

A muscle in the forearm that helps rotate the arm inward and bend the forearm at the elbow.

Subscapularis

A muscle in the shoulder that is part of the rotator cuff, responsible for medially rotating the arm.

Brachialis

A muscle in the upper arm that flexes the elbow joint, positioned beneath the biceps.