In 2012,Baroque,Inc.,a U.S.corporation,earned profits of $200,000 before taxes.After paying federal income taxes of 30%,all of Baroque's after-tax income was paid to its only shareholder.The federal income tax rate on corporate dividends is 15%.How much tax will Baroque's shareholder pay on these dividends?

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First, calculate Baroque, Inc.'s after-tax income: $200,000 - ($200,000 * 30%) = $140,000. Then, calculate the tax on dividends: $140,000 * 15% = $21,000.