Rodger owns 100% of the shares in Trevor Inc.,a C corporation.Assume the following for the current year:
Trevor Inc.'s pre-tax income $ =\$ 16,000 $
Percentage of after-tax earnings retained by Trevor Inc. $ =0 \% $ (i.e. all after-tax earnings 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% of the shares in Trevor Inc.,a C corporation.Assume the following for the current year:
 Trevor Inc.'s pre-tax income $ =\$ 16,000 $
Percentage of after-tax earnings retained by Trevor Inc. $ =0 \% $ (i.e. all after-tax earnings 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% of the shares in Trevor Inc.,a C corporation.Assume the following for the current year:
 Trevor Inc.'s pre-tax income $ =\$ 16,000 $
Percentage of after-tax earnings retained by Trevor Inc. $ =0 \% $ (i.e. all after-tax earnings 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% of the Shares in Trevor Inc =$16,000 =\$ 16,000 =$16,000

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