Susan owns all the debt and equity that is issued by Pinder Ltd. Pinder Ltd has an EBIT of $540,207. Of that EBIT, Pinder Ltd pays interest expenses of $183,498 and distributes all net income as dividends. The corporate tax rate is 33%, and Susan's personal income tax rate is 45%, applicable to both dividend and interest income. Susan currently lives under the classical tax system. Based only on the information above, how much more after-tax income would Susan have earned from interest and dividends under an imputation tax system? (round to the nearest two decimal places) a) None of the other answers. b) $64,742.68 c) $63,741.71 d) $63,242.47 e) $64,242.34

Susan owns all the debt and equity that is issued by Pinder Ltd. Pinder Ltd has an EBIT of $540,207. Of that EBIT, Pinder Ltd pays interest expenses of $183,498 and distributes all net income as dividends. The corporate tax rate is 33%, and Susan's personal income tax rate is 45%, applicable to both dividend and interest income. Susan currently lives under the classical tax system. Based only on the information above, how much more after-tax income would Susan have earned from interest and dividends under an imputation tax system? (round to the nearest two decimal places) a) None of the other answers. b) $64,742.68 c) $63,741.71 d) $63,242.47 e) $64,242.34

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges

Section: Chapter Questions

Problem 7DQ

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