Question

Silver Inc. is an S corporation. This year it earned​ $60,000 of taxable income and paid a​ $10,000 distribution to​ Daisy, its sole shareholder. Daisy has a marginal tax rate of​ 24%. Due to the​corporation's results and the distribution​ paid, the IRS will receive total taxes of A. ​$14,400. B. ​$27,000. C. ​$9,000. D.​$14,100.

Answer 1

$14,400

Step-by-step explanation:

Given:

Total taxable income = $60,000

Total distribution paid to the Daisy = $10,000

Marginal tax rate = 24%

Now,

the total taxed received by the IRS

= Total taxable income × Marginal Tax rate

or

the total taxed received by the IRS = $60,000 × 24%

or

the total taxed received by the IRS = $14,400

Hence, the answer is option (a)