McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 35

Gopher Corporation reported taxable income of $500,000 in 2011.Gopher paid a dividend of $100,000 to its sole shareholder, Sven Anderson.Gopher Corporation is subject to a flat rate tax of 34%.The dividend meets the requirements to be a qualified dividend and Sven is subject to a tax rate of 15% on the dividend.What is the income tax imposed on the corporate income earned by Gopher and the income tax on the dividend distribution to Sven?