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:

Statistical Tests

Procedures used in statistics to determine whether hypotheses about data sets can be supported or refuted.

Natural Phenomena

Events or physical occurrences in the natural world that are not influenced by human beings.

Empirical

Relies on, deals with, or can be proven through watching or undergoing something firsthand rather than through theoretical or strictly logical means.