An S corporation earns 59.10 per share before taxes. The corporate tax rate is39%, the personal tax rate on dividends is 15%, and the personal tax rate onnon-dividend income is 36%. What is the total amount of earnings after -taxes? a. $3.28 b. $3.93 c. $2.62 d. $4.59

For an S corporation, corporate income is generally not subject to corporate tax because the income…

Answered: An S corporation earns 59.10 per share…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section2.A: Taxes

Problem 3P

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An S corporation earns 59.10 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the total amount of earnings after - taxes? a. $3.28 b. $3.93 c. $2.62 d. $4.59