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qid 113 · business
Question: Dermanand Klein are the sole stockholders of the Leather Products Corporation. It is estimated that Leather Products will have a taxable income of $30,000 this year. The stock is evenly divided between Mr.Dermanand Mr. Klein, so that resulting dividends will also be equally shared. Both Mr. Dermanand Mr. Klein expect to receive from other sources a net taxable income of $12,000. All profit after taxes Leather Products makes this year will be paid out as dividends. Mr.Dermanwants to introduce a new product. Should this venture succeed, the annual income before taxes will increase by $10,000. What will be the increase in stockholders' income after taxes? Use the tables "Federal Taxes Rates on 1949 Net Incomes of Corporations in the United States", and "Federal Tax Rates on 1949 Incomes of Individuals in the United States."
- $1,129.88
- $850
- $1,050
- $2,250
- $2,400
- $1,500
- $2,000
- $900
- $3,000
- $1,200
Our answer: A. $1,129.88 Source pending
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Stored formula / worked method, replayed by code
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