Chanel is a 100% owner of Chanel, Inc., a C Corporation. In the current year, Chanel, Inc., reports $250,000 of taxable income (all ordinary income) and distributes its after-tax income to Chanel. Assume Chanel’s marginal rate on ordinary income is 32% and her marginal rate on qualified dividends is 15%. 

Calculate the combined corporate and individual tax paid by Chanel and Chanel, Inc. (ignore any qualified business income deduction considerations)

Answer rating: 100% (QA)

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