DQuestion 6Samantha lives under an imputation tax system. Her income tax rate is 30%, which appliesto all of her income, including wages, interest income and dividend income. Samantha owns1000 shares of Rio Inc. which has 3.2 billion shares outstanding and taxable income of $1.8billion (in the current year). Rio's pays corporate tax rate at 28% and its payout ratio in thepast has been 60%. Rio has just announced that it will maintain the past payout ratio and alldividends (to be paid next month) will be fully franked. Given this information, if Samanthahad lived under a classical tax system, which of the following is closest to the additional taxshe would have to pay as a Rio shareholder?$45.25O $66.15O None of the other answersO $72.90O $82.45

Imputation tax system is the system which has been implemented by the government under which the…

Answered: had lived under a classical tax system,…

had lived under a classical tax system, which of the following is closest to the additional tax she would have to pay as a Rio shareholder?

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter3: Preparing Your Taxes

Section: Chapter Questions

Problem 2FPE: ESTIMATING TAXABLE INCOME, TAX LIABILITY, AND POTENTIAL REFUND. Hannah Owens is 24 years old and...

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Filing Federal Income Tax Return

A tax is the amount of money paid to the government on the revenue earned by the individual or business organization. It acts as an income for the government and an expense for the individual or business organization. There are different regulations regarding filing an income tax return in other countries.

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