An S Corporation Earns $9

question 75

Multiple Choice

An S corporation earns $9.10 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the total amount of taxes paid if the company pays a $5.00 dividend?

• A) $3.28
• B) $3.93
• C) $2.62
• D) $4.59

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Definitions:

Margin Of Safety

The extent to which a product or activity is considered safe, or the difference between a product's normal operating condition and its failure point.

Endocrine Systems

A chemical messaging system in the body comprised of glands that release hormones directly into the bloodstream, influencing numerous physiological processes.

Immune

Having resistance to a specific infectious disease, often through vaccination or previous infection, leading to specific immunity.

Nervous

Feeling of anxiety, apprehension, or unease, often related to fear of a specific situation or outcome.