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:

Prospective Cohort

A study that follows a group of similar individuals over time to determine how their exposures affect their outcomes.

Cross-sectional

A study method that observes and analyzes data from either an entire population or a selected representative segment at a particular moment.

Longitudinal

Relating to research or study that involves repeated observations of the same subjects over a period, often years or decades.

Time-lagged

Referring to studies or analyses that consider the delay between the occurrence of one event and the observation of its effects.