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
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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 "C" 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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