How much of corporation net income is paid out as dividend

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Assume the following: a public corporation in a 27.5% tax bracket has taxable income of $150,000. The corporation pays a dividend of 40% of its net income after tax. The corporation's sole shareholder, and individual, is in the 50% tax bracket.

Question 1) How much of the corporation's net income is paid out as a dividend?

Question 2) How much is the shareholder's taxable dividend?

Question 3) How much is the shareholder's net income after taxes from the dividend?

Reference no: EM132704011

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