Question

You are a shareholder in an S corporation. The corporation earns $2.31 per share before taxes. As a pass-through entity, you will receive $2.31 for each share that you own. Your marginal tax rate is 35%. How much per share is left for you after all taxes are paid

Answer 1

$1.50

Step-by-step explanation:

Calculation for How much per share is left for you after all taxes are paid

Using this formula

Amount per share left= Amount per share-(Amount per share× marginal tax rate

Let plug in the formula

Amount per share left=$2.31-($2.31×35%)

Amount per share left=$2.31-0.8085

Amount per share left=$1.50

Therefore How much per share is left for you after all taxes are paid will be $1.50