Homework Answers
Answer:
| Corporate Tax | $136,000 |
| Shareholder Tax | $35,000 |
| Total income tax | $171,000 |
Explanation:
Corporate tax is charged at 34%.
Corporate tax = $400,000 * 34% = $136,000
Shareholder tax is charged at $100,000 @35% as the bonus paid is $100,000.
Shareholder tax = $100,000 * 35% = $35,000
Total income tax = $136,000 + $35,000 = $171,000
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