It is 2018. The company you founded called Mineral Gells had earnings before tax of $100,000,000...
It is 2018. The company you founded called Mineral Gells had earnings before tax of $100,000,000 this year (congratulations!). You are the company’s sole owner. The corporate tax rate is 21%, you are in the 37% marginal bracket, and your dividends are taxed at 20%.
Mineral Gells is a C-corporation and pays out 50% of its income in the form of dividends. How much do you personally have to pay in taxes, and what is your after-tax dividend?
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It is 2018. The company you founded called Mineral Gells had
earnings before tax of $100,000,000...
It is 2017. The company you founded called Mineral Gells had earnings before tax of $100,000,000...
It is 2017. The company you founded called Mineral Gells had earnings before tax of $100,000,000 this year (congratulations!). You are the company’s sole owner. The corporate tax rate is 35%, you are in the 39.6% marginal bracket, and your dividends are taxed at 20%. Mineral Gells is a C-corporation and pays out 50% of its income in the form of dividends. How much do you personally have to pay in taxes, and what is your after-tax dividend?
It is 2018. The company you founded called Mineral Gells had earnings before tax of $100,000,000...
It is 2018. The company you founded called Mineral Gells had earnings before tax of $100,000,000 this year (congratulations!). You are the company’s sole owner. The corporate tax rate is 21%, you are in the 37% marginal bracket, and your dividends are taxed at 20%. Mineral Gells is an S-corporation and does a 50% distribution of income. The new tax code allows you to exclude 20% of your business income from taxation; this means you pay taxes only on 80%...
It is 2017. The company you founded called Mineral Gells had earnings before tax of $100,000,000...
It is 2017. The company you founded called Mineral Gells had earnings before tax of $100,000,000 this year (congratulations!). You are the company’s sole owner. The corporate tax rate is 35%, you are in the 39.6% marginal bracket, and your dividends are taxed at 20%. Mineral Gells is an S-corporation and does a 50% distribution of income. How much do you personally have to pay in taxes, and what is your after-tax distribution of income?
In the current year, Azure Company has $350,000 of net operating income before deducting any compensation...
In the current year, Azure Company has $350,000 of net operating income before deducting any compensation or other payment to its sole owner, Sasha. In addition, Azure has an interest on municipal bonds of $25,000. Sasha has significant income from other sources and is in the 37% marginal tax bracket. Based on this information, determine the income tax consequences to Azure Company and to Sasha during the year for each of the following independent situations. (Ignore the deduction for qualified...
Pleas show work! In the current year, Azure Company has $350,000 of net operating income before...
Pleas show work!
In the current year, Azure Company has $350,000 of net operating income before deducting any compensation or other payment to its sole owner, Sasha. In addition, Azure has interest on municipal bonds of $25,000. Sasha has significant income from other sources and is in the 37% marginal tax bracket. Based on this information, determine the income tax consequences to Azure Company and to Sasha during the year for each of the following independent situations. (Ignore the deduction...
You own 7% of Acme Corporation. Its earnings before taxes are $10,000,000. The corporate tax rate...
You own 7% of Acme Corporation. Its earnings before taxes are $10,000,000. The corporate tax rate is 33%. The personal tax rate on dividends is 19%. Acme Corporation pays out ll of its earnings as dividends. What are your after-tax earnings on the dividends? Answer to the nearest dollar.
You own 19% of Acme Corporation. Its earnings before taxes are $10,000,000. The corporate tax rate...
You own 19% of Acme Corporation. Its earnings before taxes are $10,000,000. The corporate tax rate is 32%. The personal tax rate on dividends is 20%. Acme Corporation pays out all of its earnings as dividends. What are your after-tax earnings on the dividends? Answer to the nearest dollar.
Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment...
Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,000 standard deduction for 2018. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. Assume the corporate tax rate is 21%. When required, carryout intermediate tax computations to the nearest cent and then round your final tax liability...
Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment...
Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,000 standard deduction for 2018. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. Click here to access the 2018 individual tax rate schedule to use for this problem. Assume the corporate tax rate is 21%. When required,...
Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment...
Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,000 standard deduction for 2018. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. Click here to access the 2018 individual tax rate schedule to use for this problem. [ https://imgur.com/a/SOIZ22u ] Assume the corporate tax rate is...
Pleas show work!
In the current year, Azure Company has $350,000 of net operating income before deducting any compensation or other payment to its sole owner, Sasha. In addition, Azure has interest on municipal bonds of $25,000. Sasha has significant income from other sources and is in the 37% marginal tax bracket. Based on this information, determine the income tax consequences to Azure Company and to Sasha during the year for each of the following independent situations. (Ignore the deduction...
You own 7% of Acme Corporation. Its earnings before taxes are $10,000,000. The corporate tax rate is 33%. The personal tax rate on dividends is 19%. Acme Corporation pays out ll of its earnings as dividends. What are your after-tax earnings on the dividends? Answer to the nearest dollar.
You own 19% of Acme Corporation. Its earnings before taxes are $10,000,000. The corporate tax rate is 32%. The personal tax rate on dividends is 20%. Acme Corporation pays out all of its earnings as dividends. What are your after-tax earnings on the dividends? Answer to the nearest dollar.
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