What rate will the dividend be taxed

Reference no: EM13304266

It's a tax problem. john smith (age 65) is single and earns 40000$ per year as a bank examiner. He has no itemized deductions and no dependents. He also owns stock in ABC corporation and he received a 10,000 distribution from ABC during the year. Current earnings and profits ( E&P) accumulated E&P and his basis in the shares equal $3000, $4000 and $5,000, respectively! How much of the 10,000 is taxed as dividend income? Assuming the dividend is a "qualifying dividend", what rate will the dividend be taxed? Assuming the dividend is not a "qualifying dividend", at what rate will the dividend be taxed?

Reference no: EM13304266

Questions Cloud

The net income of the subsidiary account appear : 1 On consolidated financial statements, where does the parent's equity in the net income of the subsidiary account appear?

Compare and contrast the financial leverage : Determine the degree of financial leverage. Understand the impact of financial leverage on the volatility of earnings per share.

How much can they withdraw on his 18th birthday : Students parents established a college savings plan for the student when he was born. They deposited $50 into the account on the last day of each month. The account has earned 10% compounded monthly, tax-free.

The book value of bullen''s accounts : Bullen Inc. acquired 100% of the voting common stock of Vicker Inc. on January 1, 2013. The book value and fair value of Vicker's accounts on that date (prior to creating the combination) follow, along with the book value of Bullen's accounts

What rate will the dividend be taxed : It's a tax problem. john smith (age 65) is single and earns 40000$ per year as a bank examiner. He has no itemized deductions and no dependents

Kilograms produced and sold : Kilograms produced and sold

How might these problems be alleviated : Give some examples that illustrate fow (a) seasonal factors and (b) different growth rates might distort a comparative ratio analysis. How might these problems be alleviated?

Computes depreciation to the nearest full month : On July 1, 20--, Williams purchased computer equipment costing $6,000. It has an expected useful life of three years and no salvage value. Assume that Williams computes depreciation to the nearest full month.

What is the expected return for an individual firm : For both types of firms, there is a 70% probability that the firm will have a 20% return and a 30% probability that the firm will have a -30% return.

User Account

All Pages