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    Dividends: How Much is Left After All Taxes Are Paid

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    You are a shareholder in a S Corporation. The corporation earns $2 per share before taxes. Once it has paid taxes it will distribute the rest of its earnings to you as a dividend. The corporate tax rate is 40%, and the personal tax rate on (both dividend and non-dividend) income is 30%. How much is left for you after all taxes are paid?

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    Solution Preview

    A S corproation is treated as a partnership for taxation. No tax would be paid on the income of ...

    Solution Summary

    The solution discusses how much is left after all taxes are paid.