An S Corporation Earns $6

question 52

Multiple Choice

An S corporation earns $6.00 per share before taxes. The corporate tax rate is 35%, the personal tax rate on dividends is 20%, and the personal tax rate on non-dividend income is 39%. What is the total amount of taxes paid if the company pays a $2.00 dividend?

• A) $1.87
• B) $2.81
• C) $3.28
• D) $2.34

---

Definitions:

Industrialized Countries

Nations that are characterized by significant industrial activity, advanced technological infrastructure, and higher standards of living.

Worker Involvement

The active participation of employees in decision-making processes within their workplace.

Lean Processes

Streamlined operations that aim to maximize value to the customer while minimizing waste and inefficiency.

Management By Stress

A management strategy that deliberately imposes stress or high-pressure conditions on employees to increase productivity or efficiency, often at the cost of employee well-being.