How much tax would be paid directly by the owners

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Question - If a corporation had earnings of $40,000 and paid all of this out as a dividend to the owner, how much tax would be paid directly by the owners of the corporation? Assume a 20% federal income tax rate and a 15% dividend tax rate.

A. 8000

B. 12,800

C. 4800

D. 6000

Reference no: EM132782501

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