Crocker Company, Inc. had taxable income of $141,337. At the end of the year, it distributes...

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Crocker Company, Inc. had taxable income of $141,337. At the end of the year, it distributes all its after-tax earnings to Jimmy, the company's sole shareholder. Assume Crocker's tax rate is 21 percent, Jimmy's marginal ordinary tax rate is 28 percent and his marginal tax rate on dividends is 15 percent. What are the total taxes paid by both Crocker and Jimmy on Crocker Company's pre-tax income? Crocker Company, Inc. had taxable income of $141,337. At the end of the year, it distributes all its after-tax earnings to Jimmy, the company's sole shareholder. Assume Crocker's tax rate is 21 percent, Jimmy's marginal ordinary tax rate is 28 percent and his marginal tax rate on dividends is 15 percent. What are the total taxes paid by both Crocker and Jimmy on Crocker Company's pre-tax income?

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Answer Tax paid by Crocker and Company CC 2968077 14133... View the full answer