Phyllis and Eugene each own one half of the stock of Apex Corporation. Apex earns $100,000 in
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Phyllis and Eugene each own one half of the stock of Apex Corporation. Apex earns $100,000 in 2019. The corporate tax rate is 20%. The applicable individual tax rate for each of the shareholders is 30%. Apex plans on distributing all its earnings after taxes in 2019.
A. How much will the two shareholders, Phyllis and Eugene, receive, net of tax, in 2019?
B. How much would Phyllis and Eugene receive, net of tax, if Apex was a general partnership and they were equal partners?
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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