Required information Problem 15.50 (LO 15-3) (Static) [The following information applies to the questions displayed...
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Required information Problem 15.50 (LO 15-3) (Static) [The following information applies to the questions displayed below] Amanda would like to organize BAL as ether an LIC (taxed as a sole proprietorship) or a C corporation In either form, the entity is expected to generate an 8 percent annual before-tax return on a $500,000 investment. Amanda's marginal income tax rate is 37 percent, and her tax rate on qualified dividends and net capital gains is 20%. Assume that BAL will distribute half of its after-tax earnings every year as a dividend if it is formed as a C corporation. Assume the income is not eligible for the QBI deduction. Further, when computing your answers, include the self-employment tax (use a 2.9% marginal rate for self-employment income because Amanda has salary in excess of the wage base limit) but not the additional Medicare tax or the net investment income tax Problem 15-50 Part a (Static) o. How much cash after taxes would Amanda recelve from her investment in the first year if BAL is organized as an LLC? What if BAL is organized as a C corporation? Note: Round intermediate calculations and your final answers to the nearest whole dollar
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