{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Solution%20to%20Assignment%20Problem%20Ch13-1

Solution%20to%20Assignment%20Problem%20Ch13-1 - $ 8,000...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Solution to Assignment Problem Thirteen - 1 The required calculations would be as follows: Corporate Taxes Income For The Year $50,000 Corporate Taxes (16%) ( 8,000) Income Available For Dividends $42,000 Personal Taxes On Dividends Dividend Income $42,000 Gross Up (25%) 10,500 Taxable Dividends $52,500 Tax Payable Before Dividend Tax Credit [(29% + 14%)($52,500)] $22,575 Dividend Tax Credit [(2/3 + 1/3)($10,500)] ( 10,500) Personal Tax Payable $12,075 Total Taxes On Corporate Flow Through Corporate Taxes
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: $ 8,000 Personal Taxes 12,075 Total Taxes $20,075 Total Taxes On Income Earned Directly Income For The Year $50,000 Combined Federal/Provincial Tax Rate (29% + 14%) 43% Personal Tax Payable $21,500 As the corporate tax rate is below the 20 percent rate that will provide perfect integration, integration does not work. The taxes on income flowed through a corporation are $1,425 ($21,500 - $20,075) less than would be assessed if the income were received directly....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern