You Own 100 Shares of a Sub Chapter "S" Corporation

question 15

Multiple Choice

You own 100 shares of a Sub Chapter "S" corporation in the U.S.. 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:

Unionization

The process of organizing workers into a union, a group that collectively negotiates with employers for wages, hours, and other conditions of employment.

Finance

The administration of substantial sums of money, particularly by large corporations or government bodies.

Manufacturing

The process of producing goods using labor, machines, tools, and chemical or biological processing or formulation.

Mining

The process of extracting minerals, metals, and other geological materials from the earth, typically from an ore body, lode, vein, seam, or placer deposit.