Ch1-1 excel.xlsx - You own 100 shares of a"C corporation The corporation earns \$5.00 per share before taxes Once the corporation has paid any corporate

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

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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?

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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

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Unformatted text preview: 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? 100 shares \$5.00 per share 40% corp tax rate 30% personal tax \$ 4.00 35% 15% Corporate tax paid \$ 1.40 (\$4*.35) Amount to distribute \$ 2.60 (\$4-\$1.40) Personal income tax \$ 0.39 (\$2.60*.15) Amount left after taxes \$ 2.21 (\$2.60-\$.39) Total taxes paid \$ 1.79 (\$1.40+\$.39) Total effective tax rate 45% (\$1.79/\$4) You own 100 shares of a &quot;C&quot; corporation. The corporation earns \$4.00 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 35% and your personal tax rate on (both dividend and non dividend) income is 15%, then how much money is left for you after all taxes have been paid? per share corp tax rate personal tax rate...
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