How much cash does rodger have from the dividend

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Rodger owns 100 percent of the shares in Trevor Inc., a C corporation. Assume the following for the current year:

Trevor Inc.'s pretax income =                                       $22,500

Percentage of after-tax earnings retained by Trevor Inc. = 0% (i.e., all after-tax earnings distributed)

Rodger's dividend tax rate =                                         15%

Question 1: Given these assumptions, how much cash does Rodger have from the dividend after all taxes have been paid?

Reference no: EM132482479

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