Bryan Houlberg expects his C corporation to generate a profit of $200,000. What is Bryan's after-tax cash flow from the corporation if net income after corporate tax is distributed to him as a dividend and his marginal tax rate on ordinary income is 37%?
A) $120,800
B) $90,188
C) $126,400
D) $158,000

Question

Quizplus · Accepted Answer

The Answer of Bryan Houlberg expects his C corporation to generate a profit of $200,000. What is Bryan's after-tax cash flow from the corporation if net income after corporate tax is distributed to him as a dividend and his marginal tax rate on ordinary income is 37%?
A) $120,800
B) $90,188
C) $126,400
D) $158,000

Bryan Houlberg Expects His C Corporation to Generate a Profit