Arnold is the President of Conrad Corporation.Arnold owns 30% of Conrad,which is organized as an S corporation.Arnold's salary is $100,000.Conrad reports the following for the current year:
Conrad Corporation pays $400,000 of dividends.Explain the effect of the above information on Arnold's taxable income.

Question

Arnold is the President of Conrad Corporation.Arnold owns 30% of Conrad,which is organized as an S corporation.Arnold's salary is $100,000.Conrad reports the following for the current year:  
Conrad Corporation pays $400,000 of dividends.Explain the effect of the above information on Arnold's taxable income.

Quizplus · Accepted Answer

The Answer of Arnold is the President of Conrad Corporation.Arnold owns 30% of Conrad,which is organized as an S corporation.Arnold's salary is $100,000.Conrad reports the following for the current year:  
Conrad Corporation pays $400,000 of dividends.Explain the effect of the above information on Arnold's taxable income.

Arnold Is the President of Conrad Corporation