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:

Charles Foster Kane

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The cognitive process leading to the selection of a course of action among several alternatives.

First-person Subjective

A narrative style where the story is narrated from the point of view of one character, revealing their personal thoughts and feelings.

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A Polish-British writer known for his narrative prose and deep explorations of the human psyche in novels like "Heart of Darkness."