Question: Three stockholders with name initials AB , AC and AD represent AAA CORPORATION. AB is 4 0 % ownership where AC and AD are 3

Three stockholders with name initials AB, AC and AD represent AAA CORPORATION.
AB is 40% ownership where AC and AD are 30% each.
AAA Corporation has made Gross revenue in the amount of $ 800,000.00 last year.
While filling for the corporation taxes, they have showed $500,000.00 in expenses.
AB, AC and AD were withdrawing $80,000.00 each as salaries.
The corporation was taxed at a rate of 40% by the IRS (Taxing Agency).
AAA Corporation had decided to distribute half of their after-tax profit to their stockholders as bonuses.
The stockholders are taxed on the personal level as follows: AB
35%, AC and AD are 25% each.
a) How much each of the stockholders received bonuses?
b) What is the total amount the IRS has collected from the corporation and from the stockholders?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!