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P 1-6 (similar to) Question Help You are a shareholder in a C corporation. The corporation earns $2.48 per share before taxes
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Answer #1

The amount that remains is $ $1.076 per share.

Calculation:

Corporate earnings before tax =$2.48 per share

Corporate tax rate =38%

Corporate Tax on earnings= 2.48*38%= $0.9424

After tax corporate earnings= $2.48-$0.9424= $1.5376

Personal tax= $1.5376*30%= $0.46128

Amount left after all taxes are paid= $1.5376-$0.46128= $1.076 per share

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