Daisy, Inc., has taxable income of $850,000 during 2011, its first year of operations. Daisy distributes dividends of $200,000 to its 10 shareholders (i.e., $20,000 each). Daisy earmarks $361,000 of its earnings for potential future expansion into other cities.

Question

Quizplus · Accepted Answer

The Answer of Daisy, Inc., has taxable income of $850,000 during 2011, its first year of operations. Daisy distributes dividends of $200,000 to its 10 shareholders (i.e., $20,000 each). Daisy earmarks $361,000 of its earnings for potential future expansion into other cities.