Crocker and Company (CC) is a C corporation. For the year, CC reported taxable income of $559,000. At the end of the year, CC distributed all its after-tax earnings to Jimmy, the company's sole shareholder. Jimmy's marginal ordinary tax rate is 37 percent and his marginal tax rate on dividends is 23.8 percent, including the net investment income tax. What is the overall tax rate on Crocker and Company's pre-tax income?

Answer rating: 100% (QA)

Given data Crocer and company taxable Income 557000 Jimmy mar... View the full answer