Marathon Inc. (a C corporation) reported $2,000,000 of taxable income in the current year. During the year, it distributed $200,000 as dividends to its shareholders as follows: (Leave no answer blank. Enter zero if applicable.)
1. | Amount deductible | ___________? |
2. | Tax paid | ___________? |
3. | Tax paid | ___________? |
Answer :-
1 ) :-
$0. A company isn't permitted to deduct profit circulations it makes to its investors.
2 ) :-
$1,500 . Fellow would settle regulatory obligation on the profit at a 15% duty rate.
3 ) :-
$15,000 impose. $30,000 profit – $15,000 profits got derivation = $15,000
no | Particulars | Amount |
1. | Amount deductible | $0 |
2. | Tax paid | $1,500 |
3. | Tax paid | $15,000 |
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