Chapter 1 Homework - 10 points

1. See the double taxation structure and determine which pay structure is applicable to before / after 2003 regulations. Write in black boxes below.

Partnership

Corporation

Profit

$1,650,000

$1,650,000

Corp tax

$0

$544,500

Net income

$1,650,000

$1,105,500

Cash div

$1,650,000

$1,105,500

Tax div

$0

$221,100

Tax partnership

$594,000

$0

After-tax disposable income

$1,056,000

$1,785,000

Partnership

Corporation

Profit

$1,650,000

$1,650,000

Corp tax

$0

$577,500

Net income

$1,650,000

$1,072,500

Cash div

$1,650,000

$1,072,500

Personal tax

$636,900

$413,985

After-tax disposable income

$1,013,100

$658,515

2. Calculate the five respective taxes and also please indicate whether the taxes are

BUSINESS FINANCE - BAF3 30 DEPARTMENT OF BUSINESS ADMINISTRATION AND ECONOMICS JOHNSON C. SMITH UNIVERSITY SPRING 1 2016 Name " Chapter 1 Homework - 10 points 1 . See the double taxation structure and determine which pay structure is applicable to before ! after 2003 regulations . Write in black boxes below . Partnership Corporation Profit $ 1 , 6:50,000 \\$ 1, 650, 000 LOT LAX $0 $5.4 4, 50.0 NET INCOME $ 1. 650, 000 \\$ 1. 105, 500 Lash div $ 1 . 5:50, 000 \\$ 1 . 105, 500 Tax' div $221, 100 Ta`` partnership $5.94, 000 AllEr- lax disposable income| $ 1 . 056, 000 \\$ 1 . 785, 000 Partnership\\\\ Corporation Profit $ 1. 650, 000 \\$ 1. 650, 000 LORD ``X`` \\$57 7. 500 NETINCOME $ 1, 650, 000 \\$ 1 . 072, 500 Lash div $ 1, 650. 000 \\$ 1, 072, 500 Personal TAX` $636, 200 $413, 985 After- tax disposable income\\$ 1. 013. 100\\\\ \\$658 , 515 2. Calculate the five respective taxes and also please indicate* whether the taxes are applicable for before / after 2003 regulation : Corporate tax , Dividend tax , Partnership tax , Corporate tax , and Personal tax . Write your answers below black boxes above