Jake,the sole shareholder of Peach Corporation,a C corporation,has the corporation pay him $100,000.For tax purposes,Jake would prefer to have the payment treated as dividend instead of salary.

Question

Quizplus · Accepted Answer

Dividends are generally taxed at a lower rate than salary income, which is subject to ordinary income tax rates and payroll taxes.

Jake,the Sole Shareholder of Peach Corporation,a C Corporation,has the Corporation