What is the total dividend income tax paid by Pinder Ltd

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Question - Pinder Ltd operates under the classical tax system. Pinder Ltd has a taxable income of $4460 and its tax rate is 39%. Pinder Ltd pays all of its net income as dividends. If the average personal tax rate on dividend income is 49%, what is the total dividend income tax paid by Pinder Ltd's shareholders?

a. $1170.18

b. $982.23

c. $1333.09

d. $1117.00

e. None of the other answers.

Reference no: EM133063807

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