You are a sharcholder in a corpotation. The corporation carms $15 per share before rases. After...

 

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You are a sharcholder in a corpotation. The corporation carms $15 per share before rases. After it has paid taxes, it wil distribute the rest of its earnings to you as a dividend (we make this simplifying assumption but should notc that most corpotations retain some of their eamings for reinvestment). The dividend is income to you, so you will then pay taxes on these carnings. The corporate tax rate is 35% and your tax rate on dividend income is 20. 1. Calculate the corporation camings after taxes. 2 Calculate the tax amount on your dividend 3. After paying taves, what will be your camings amounte 4, How much of the carmings remains after all taxes are paid? 5. Caleulate the total effective tax rate. Exercise 4. You are a sharcholder in a S corporation. The corporation carns $15 per share before taxes. All camings are distributed to you as a dividend. The dividend is income to you, so you will then pay taxes on thesc carnings. Your tax rate on dividend income is 20. 1. Calculate the tax amount on your dividend. 2. After paying taxes, what will be your camings amount? 3. Compare your results to the results of Escrcise 3. Exercise 4. You are a sharcholder in a corporation. The corporation earns $8 per share becfore taxes. After it has paid taxes, it will distribute 65% of the earnings to you as a dividend. The dividend is income to you, so you will then pay taxes on these earnings. The corporate tax rate is 40% and your tax tate on dividend income is 25% 1. Calculate the corporation camings after taxes. 2. Calculate the tax amount on your dividend 3. After paying taxes, what will be your eamings amount 4. How much of the carnings remains after all taxes are paide 5. Calculate the total effective tax rate. Exercise 5. You are a sharcholder in a S corporation. The corporation cams $8 per share before tANen. The corporation distribute 65% of the camings to you as a dividend. The dividend is income ro you, so you will then pay taxes on these earnings. Your tax rate on dividend income is 25%. 1 Calculate the tax amount on your dividend. 2. After paying taxes, what will be your carmings amount? 3. Compare your results to the results of Exercise 4. You are a sharcholder in a corpotation. The corporation carms $15 per share before rases. After it has paid taxes, it wil distribute the rest of its earnings to you as a dividend (we make this simplifying assumption but should notc that most corpotations retain some of their eamings for reinvestment). The dividend is income to you, so you will then pay taxes on these carnings. The corporate tax rate is 35% and your tax rate on dividend income is 20. 1. Calculate the corporation camings after taxes. 2 Calculate the tax amount on your dividend 3. After paying taves, what will be your camings amounte 4, How much of the carmings remains after all taxes are paid? 5. Caleulate the total effective tax rate. Exercise 4. You are a sharcholder in a S corporation. The corporation carns $15 per share before taxes. All camings are distributed to you as a dividend. The dividend is income to you, so you will then pay taxes on thesc carnings. Your tax rate on dividend income is 20. 1. Calculate the tax amount on your dividend. 2. After paying taxes, what will be your camings amount? 3. Compare your results to the results of Escrcise 3. Exercise 4. You are a sharcholder in a corporation. The corporation earns $8 per share becfore taxes. After it has paid taxes, it will distribute 65% of the earnings to you as a dividend. The dividend is income to you, so you will then pay taxes on these earnings. The corporate tax rate is 40% and your tax tate on dividend income is 25% 1. Calculate the corporation camings after taxes. 2. Calculate the tax amount on your dividend 3. After paying taxes, what will be your eamings amount 4. How much of the carnings remains after all taxes are paide 5. Calculate the total effective tax rate. Exercise 5. You are a sharcholder in a S corporation. The corporation cams $8 per share before tANen. The corporation distribute 65% of the camings to you as a dividend. The dividend is income ro you, so you will then pay taxes on these earnings. Your tax rate on dividend income is 25%. 1 Calculate the tax amount on your dividend. 2. After paying taxes, what will be your carmings amount? 3. Compare your results to the results of Exercise 4.

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Exercise 3 Particulars Amount Earnings Before Taxes 15 Less Taxes 20 5 Earnings After Taxes 10 Less ... View the full answer