Rodger Owns 100% of the Shares in Trevor Inc Given These Assumptions, How Much Cash Does Rodger Have from C

question 52

Essay

Rodger owns 100% of the shares in Trevor Inc., a C corporation. Assume the following for the current year: $$\begin{array} { | l | } \hline \text { Trevor Inc.'s pre-tax income } = \$ 16,000 \\\hline \text { Trevor Corp's marginal tax rate } = 35 \% \\\hline \text { Percentage of after-tax earnings retained by Trevor Corp } \\= 0 \% \text { (i.e. all after-tax earnings distributed) } \\\hline \text { Rodger's dividend tax rate } = 5 \% \\\hline\end{array}$$ Given these assumptions, how much cash does Rodger have from the dividend after all taxes have been paid?

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Thready

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Any abnormal tissue or damage in the body, seen on the skin or within the body on an organ or tissue.