Ch1-1 excel.xlsx - You own 100 shares of a"C corporation...

100
$ 5.00
40%
30%
Shares value $ 500.00 (100*5)
Corporate tax paid $ 200.00 (500*.40)
Amount to distribute $ 300.00 (500-200)
Personal income tax $ 90.00
(300*.30)
Amount left after taxes $ 210.00
(300-90)
You own 100 shares of a "C" corporation. The corporation earns $5.00 per share before taxes.
Once the corporation has paid any corporate taxes that are due, it will distribute the rest of its
earnings to its shareholders in the form of a dividend. If the corporate tax rate is 40% and your
personal tax rate on (both dividend and non dividend) income is 30%, then how much money is
left for you after all taxes have been paid?

shares
per share
corp tax rate
personal tax rate

Shares value $ 500.00 (100*5)
Corporate tax paid S Corp has no corp tax
Amount to distribute $ 500.00 (100*5)
Personal income tax $ 150.00
(500*.30)
Amount left after taxes $ 350.00
(500-150)
You own 100 shares of a Sub Chapter "S" corporation. The corporation earns $5.00 per share before
taxes. Once the corporation has paid any corporate taxes that are due, it will distribute the rest of