are a shareholder in a "S" corporation. This corporation earns $4 per share before taxes. After it has paid taxes, it will distribute the remainder of its 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 21% and your tax rate on dividend income is 15%. The effective tax rate on your share of the corporations' earnings is closest to: WHEELSTE • 15% O 21% О 28% O 33% • 36%

Q: How much of the earnings remains after all taxes are paid?

A: Earnings: These represent profits or losses made by the company from its overall business. It is…

Q: Since corporations are taxed at a flat rate of 21%. I answed the question with that calculation. Is…

A: Darter Corporation income tax liability=$68,000×0.21=$14,280 Owl Corporation income tax…

Q: Xavier Corporation ends the year with net income of $250,000 and long term capital gains of $30,000.…

A: In the given case, the long term capital gains are treated as short term capital gains as there is…

Q: Assume that dividends are taxed at your marginal tax rate of 38% while capital gains are taxed at…

A: The portion of the earnings per share that is given to the shareholder is termed as the dividend.

Q: (EBIT).

A: Tax is calculated by subtracting EBIT minus the interest expense & multiplied by the respective…

Q: You are a shareholder in a C corporation. The corporation earns $2.01 per share before taxes. Once…

A: Given: Given:   Pre-tax earnings per share  $    2.01 Corporate tax rate 22% Dividend…

Q: You are a shareholder in a C corporation. The corporation earns ​$2.13 per share before taxes. Once…

A: Variables in the question:Corporation earns per share before taxes =​$2.13Once it has paid​ taxes,…

Q: An S corporation earns $4.7 per share before taxes. The corporate tax rate is​ 35%, the personal tax…

A: In S corporation is a type of business format in which the income is directly transferred to the…

Q: 25. Calculate the amount of corporate income tax due and the net income after taxes (in $) for the…

A: Formula: Tax liability = Taxable income x Tax rate

Q: A corporation pays taxes at the flat rate of 39% and has operating profit of $1 million.  It pays…

A: Taxes collected by government is as under -

Q: Randal Corporation reports the following results for the current​ year: Gross profits on sales…

A: Regular dividends are declared by a firm and are paid out on a planned basis, such as quarterly or…

Q: he Wendt Corporation reported $45 million of taxable income. Its federal tax rate was 21% (ignore…

A: The amount of income needed to determine the taxes owing by an individual or a business is referred…

Q: Determine the possible tax consequences of each issue that you identify. Myrtle Coast Corporation…

A: Tax consequence is defined as the taxable event which is from any transaction that might result in…

Q: which has the highest marginal tax rate, an individual or a C corporation?

A: The marginal tax rate represents the percentage of tax applied to an individual's or entity's next…

Q: Refer to the Tax Rate Table below (or Table 2.3 in the book). Corporation Growth has $92000 in…

A: Income tax is charged on the taxable income of the corporation. It can be calculated on the basis of…

Q: Pyri Flours, a sole proprietorship, owes $9,741 in taxes on taxable income of $61,509. If the firm…

A: Average rate of tax =

Q: Corporation AB’s marginal tax rate is 10 percent, and Corporation YZ’s marginal tax rate is 21…

A: Accounts receivable is the term used to describe the money that consumers owe a business for…

Q: Don't provide handwritten answer. You are a shareholder in a C corporation. The corporation earns…

A: Earning available after taxes is the amount which is available in the hands of shareholder after…

Q: Calculate Anaheim Corporation's excess net passive income tax in each of the following alternative…

A: Step by step explanationExplanation:To calculate Anaheim Corporation's excess net passive income…

Q: Chem-Lite Incorporated, maintains its accounts on the basis of a fiscal year ending March 31. At…

A: Depreciation is defined as the accounting method implemented to allocate the cost of a long-term…

Q: Lois's expected share of income from an S corporation is $900,000. Lois's marginal tax rate on…

A: Ordinary Income: Ordinary income is generally described as pay other than long-haul capital…

Q: Suppose that in addition to $18.05 million of taxable income, Texas Taco, Inc., received $2,300,000…

A: a. Total taxable income = income + dividend = 18,05,00,00 + 7,30,000 = 18,78,00,00       Note…

Q: In 2020, Collins Co. had taxable income of -$5,600,000. In 2021, the firm has taxable income of…

A: The provision allows firms to offset future taxable income by the amount of the previous year's…

Q: Corporations earn most of their income from operations; however, they may also receive interest and…

A: Income from Operations (ordinary income) = $235,000Interest Income (ordinary income) =…

Q: Assume that Farm Fresh Produce, Inc. is a chain of farmers’ market kiosks that is organized as a…

A: Tax refers to the amount that is charged by the government and the tax authority from the individual…

Q: Calculate Anaheim Corporation's excess net passive income tax in each of the following alternative…

A: Answer:- Passive income is defined as money received by a taxpayer from sources other than…

Q: 18. Calculate the amount of corporate income tax due and the net income after taxes (in $) for the…

A: Tax liability is calculated as flat tax rate multiplied by taxable income. Net income after taxes is…

Q: a. Hunter Corporation has $250,000 in gross income, $125,000 in deductible business expenses, and a…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Tremaine would like to organize UTA as either an S Corporation or a C corporation. In either form,…

A: The question is essentially about whether the company in pertinence would be better off being a S…

Q: Calculate the amount of corporate income tax due and the net income after taxes (in $) for the…

A: The amount of taxes that an individual or business owes is generally determined by the government…

Q: If a company earns $48,000 income on a municipal bond and the tax rate is 20%, Income tax expense…

A: Taxes are the compulsory payment that should be made by the taxpayer.

Q: A single individual that has 100,000 taxable income before dividends and is in the 28% marginal tax…

A: The marginal tax rate or bracket states the highest tax rate of the taxpayer or in short, it is the…

Q: Suppose that in addition to $17.95 million of taxable income, Texas Taco, Inc., received $2,100,000…

A: The average tax rate represents the overall tax rate applicable to the taxable income. While the…

Q: During the year, CDE Corporation earned enough profits to pay dividends to its shareholders. CDE is…

A: C companies are subject to taxes at both the corporate and the shareholder levels; as a consequence,…

Q: Suppose a tax is such that an individual with an income of $10,000 pays $2000 of tax, a person with…

A: The government of a nation can charge income tax based on regressive method, proportional method and…

Q: You bought 1,000 shares of Tund Corp. stock for $90.03 per share and sold it for $60.59 per share…

A: Variables in the question:No. of shares=1000Purchase price per share=$ 90.03Sale price per share=$…

Q: Martin Company has 500k in taxable income, 50k in interest income, 100k in dividend income. Using…

A: Taxable income refers to the base upon which an income tax system imposes tax. In other words, the…

Q: From a corporation's point of view, does the tax treatment of dividends and interest paid favor the…

A: The firm raises the capital through debt and equity financing. Debt holders are paid interest and…

Q: 1. If a corporation’s tax return shows taxable income of $98,300 for Year 2 and a tax rate of 40%,…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Use the following information to calculate the federal average tax rate (ignore tax credits) for a…

A: It is the rate at which the tax is payable on the total income on the average basis. The average tax…

Q: Required: Find the after-tax return to a corporation that buys a share of preferred stock at $56,…

A: Rate of return refers to the percentage of earning with respect to the investment made in the asset…

Q: You bought 1,000 shares of Tund Corp. stock for $68.12 per share and sold it for $90.03 per share…

A: The gain or loss from selling your stocks is typically treated as a capital gain or loss when you…

Q: The Ohio Corporation had a 20XX taxable income of $50,000,000 from operations after all operating…

A: Tax liability is the total amount of taxes that a person, business, or other entity owes to the…

Q: Calculate Anaheim Corporation's excess net passive income tax in each of the following alternative…

A: Passive income is income generated from someone other than an employer. which can be derived from…

Q: a. What is the relative tax advantage of corporate debt if the corporate tax rate is TC=0.22, the…

A: Step 1: The formula for this is: Relative Tax Advantage = (1 - Tp) / (1 - Tpe) * (1 - Tp)  where Tc…

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.