Question

Alpha associates was organized on january 1, year 1. Alpha was organized as a corporation. Alpha reported $200,000 of before tax income during year 1 and paid a $30,000 cash dividend to its stockholders. Assuming a corporate income tax rate of 30% and a personal income tax rate of 15%, the total amount of tax collected by the government is.

Answer 1

Step-by-step explanation:

GIVEN DATA:

Alpha reported = $200,000

withdrew = $30,000

corporate income tax rate = 30%

personal income tax rate = 15%

SOLUTION:

we get here total amount of tax collect as

total amount of tax collect = Alpha reported amount × personal income tax rate ...............1

put here value

total amount of tax collect = $200,000 × 15%

total amount of tax collect = $30,000

here no corporate tax required and partner is taxed on share of total partnership income regardless of amount withdrawn

so the correct answer is $30,000