Answer:
From the $2 dollars of earnign per share
the stockholders will receive $1.30 dollars as only personal income tax will be levied.
Step-by-step explanation:
The S corportation do not pay corporate taxes. The earnings once distributed to the owners are taxed at their personal tax.
In this case, 35% therefor after paying the taxes:
$2.00 x ( 1 - 35% ) = $ 1.30