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Accounting

image Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Required information Problem 04-52 (LO 04-3) (Static) [The following information applies to the questions displayed below.] Tremaine would like to organize UTA as either an S Corporation or a C corporation. In either form, the entity will generate a 9 percent annual before-tax return on a $1,000,000 investment. Tremaine's marginal income tax rate is 37 percent, and his tax rate on dividends and capital gains is 23.8 percent (including the net investment income tax). If Tremaine organizes UTA as an S corporation, he will be allowed to claim the deduction for qualified business income. Also, because Tremaine will participate in UTA's business activities, the income from UTA will not be subject to the net investment income tax. Assume that UTA will pay out 25 percent of its after-tax earnings every year as a dividend if it is formed as a C corporation. roblem 04-52 Part d (Static) What is the overall tax rate on UTA's income if it is organized as an S corporation, UTA's income is not qualified business income, nd Tremaine is a passive investor in UTA? ote: Round your final answers to 1 decimal place

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