You Are a Shareholder in a Corporation Which Has Elected

question 6

Multiple Choice

You are a shareholder in a corporation which has elected chapter S treatment.The corporation announces a profit of $6 per share,of which it retains $2 for reinvestment and distributes the rest as dividend payments.Given that the personal tax rate is 35%,how much tax must you pay per share?

• A)$0
• B)$2.10
• C)$2.60
• D)$3.90

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Definitions:

Shy

A temperament or personality trait characterized by feelings of tension, nervousness, or discomfort in social situations.

Inhibited

Characterized by a restraint or suppression of impulses, emotions, or behaviors.

Uninhibited Reactions

Behavioral responses characterized by the lack of restraint or consideration of societal norms.

Fathers

Refers to male parents who play significant roles in child rearing and development, influencing aspects such as emotional health and social behaviors.