Rodger owns 100 percent of the shares in Trevor Inc., a C corporation.Assume the following for the current year:
Trevor Inc. 's pretax income $= \$ 16,000$
Percentage of after-tax earnings retained by Trevor Inc. $= 0 \%$ (i.e., all after-tax earriings distributed)
Rodger's dividend tax rate $= 15 \%$ Given these assumptions, how much cash does Rodger have from the dividend after all taxes have been paid?

Question

Rodger owns 100 percent of the shares in Trevor Inc., a C corporation.Assume the following for the current year:
 Trevor Inc. 's pretax income $= \$ 16,000$
Percentage of after-tax earnings retained by Trevor Inc. $= 0 \%$ (i.e., all after-tax earriings distributed)
Rodger's dividend tax rate $= 15 \%$ Given these assumptions, how much cash does Rodger have from the dividend after all taxes have been paid?

Quizplus · Accepted Answer

The Answer of Rodger owns 100 percent of the shares in Trevor Inc., a C corporation.Assume the following for the current year:
 Trevor Inc. 's pretax income $= \$ 16,000$
Percentage of after-tax earnings retained by Trevor Inc. $= 0 \%$ (i.e., all after-tax earriings distributed)
Rodger's dividend tax rate $= 15 \%$ Given these assumptions, how much cash does Rodger have from the dividend after all taxes have been paid?

Rodger Owns 100 Percent of the Shares in Trevor Inc =$16,000= \$ 16,000=$16,000

Rodger Owns 100 Percent of the Shares in Trevor Inc $= \$ 16,000$