A business generates profits of $150,000.The owner currently has a 32% marginal tax rate.What is the total amount of taxes paid if the business is a regular corporation and $20,000 in dividends is distributed to its sold individual shareholder?
A)Corporate tax,$31,500; individual tax,$3,000
B)Corporate tax,$48,000; individual tax,$6,400
C)Corporate tax,$31,500; individual tax,$6,400
D)Corporate tax,$0; Individual tax,$48,000

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The Answer of A business generates profits of $150,000.The owner currently has a 32% marginal tax rate.What is the total amount of taxes paid if the business is a regular corporation and $20,000 in dividends is distributed to its sold individual shareholder?
A)Corporate tax,$31,500; individual tax,$3,000
B)Corporate tax,$48,000; individual tax,$6,400
C)Corporate tax,$31,500; individual tax,$6,400
D)Corporate tax,$0; Individual tax,$48,000

A Business Generates Profits of $150,000