### Tax Analysis for Gopher Corporation*Gopher Corporation reported taxable income of \$500,000 this year. Gopher paid a dividend of \$100,000 to its sole shareholder, Sven Anderson. The dividend meets the requirements to be a qualified dividend, and Sven is subject to a tax rate of 15 percent on the dividend. What is the income tax imposed on the corporate income earned by Gopher and the income tax on the dividend distributed to Sven?*#### Tax CalculationIn the given image, it appears that we need to calculate and fill out the following types of taxes:1. **Corporate Tax**2. **Shareholder Tax**3. **Total Income Tax**##### Explanation1. **Corporate Tax**: - **Taxable income reported by Gopher Corporation**: \$500,000 - Assume a corporate tax rate (for example purposes, let's assume 21%) - Calculation: 21% of \$500,000 = \$500,000 * 0.21 = \$105,0002. **Shareholder Tax**: - **Dividend paid to Sven Anderson**: \$100,000 - **Tax rate on the dividend for Sven**: 15% - Calculation: 15% of \$100,000 = \$100,000 * 0.15 = \$15,0003. **Total Income Tax**: - **Corporate tax**: \$105,000 - **Shareholder tax**: \$15,000 - **Total**: \$105,000 + \$15,000 = \$120,000#### Graph/Diagram DescriptionThere is a table below the text, with three rows corresponding to:- Corporate tax (filled with the calculated corporate tax amount)- Shareholder tax (filled with the calculated shareholder tax amount)- Total income tax (filled with the total combined tax amount)Details are as follows:| Tax Type | Amount ||--------------------|-----------|| Corporate tax | \$105,000 || Shareholder tax | \$15,000 || Total income tax | \$120,000 |

A corporate tax is a tax levied on the profits of a firm. Taxes are levied on taxable income, which…

Gopher Corporation reported taxable income of $500,000 this year. Gopher paid a dividend of $100,000 to its sole shareholder, Sven Anderson. The dividend meets the requirements to be a qualified dividend, and Sven is subject to a tax rate of 15 percent on the dividend. What is the income tax imposed on the corporate income earned by Gopher and the income tax on the dividend distributed to Sven? Corporate tax Shareholder tax Total income tax

Gopher Corporation reported taxable income of $500,000 this year. Gopher paid a dividend of $100,000 to its sole shareholder, Sven Anderson. The dividend meets the requirements to be a qualified dividend, and Sven is subject to a tax rate of 15 percent on the dividend. What is the income tax imposed on the corporate income earned by Gopher and the income tax on the dividend distributed to Sven? Corporate tax Shareholder tax Total income tax

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 16P

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