Question

please check my work ?

Problem 1-6
You are a shareholder in a C 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?
	Corporate Tax Rate	40%
	Personal Tax Rate	30%
	Earnings per share	$2.00
	Remaining after corporate tax	$0.80
	Remaining after all taxes	$0.84

Answer 1

	Corporate Tax rate =	40%
	Persoanl Tax Rate =	30%
	CALCULATION OF AMOUNT LEFT AFTER ALL TAXES PAID
	Earning Per shares =	$                          2.00	Per Share
	Less: Corporate Tax rate 40%	$                          0.80
	Remaining after Corporate tax to Shareholders	$                          1.20
	Less: Personal Tax Rate @ 30%	$                          0.36
	Remaining after all taxes	$                          0.84
	Answer = Remaning After all taxes =   $ 0.84