2 A firm that owns the stock of another corporation does not have to pay taxes on the entire amount


2 A fast that owns the supply of another strengthening does not bear to pay taxes on the solid totality of dividends accepted. In unconcealed, simply 30 percent of the dividends accepted by one strengthening from another are taxable. The deduce for this tax law element is to ease the result of triple taxation, which occurs when rights are principal taxed at the principal fast, then its dividends remunerated to the prevent fast are taxed again, and then the dividends remunerated to supplyholders by the prevent fast are taxed yet again. Assume that a fast after a while a 35 percent tax rate receives $100,000 in dividends from another strengthening. What taxes must be remunerated on this dividend, and what is the after-tax totality of the dividend?