You are a shareholder in an S corporation. The corporation earns $2 per share before taxes. Once it has paid any applicable taxes it will distribute the rest of its earnings to you as a dividend. The corporate tax rate is 50%, and the personal tax rate on income is 35%. How much is left for you after all taxes are paid?

From the $2 dollars of earnign per share

the stockholders will receive $1.30 dollars as only personal income tax will be levied.

Explanation:

The S corportation do not pay corporate taxes. The earnings once distributed to the owners are taxed at their personal tax.

In this case, 35% therefor after paying the taxes:

$2.00 x ( 1 - 35% ) = $ 1.30

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported