Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. view previous attempt 18 required information part

View previous attempt 18 Required information Part 1 of 2 The following information applies to...

90.2K

Verified Solution

Question

Accounting

image

View previous attempt 18 Required information Part 1 of 2 The following information applies to the questions displayed below Sandra would like to organize BAL as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 11 percent annual before-tax return on a $730,000 investment. Sandra's marginal income tax rate is 37 percent and her tax rate on dividends and capital gains is 23.8 percent (including the 3.8 percent net investment income tax). If Sandra organizes BAL as an LLC she will be required to pay an additional 2.9 percent for self-employment tax and an additional 0.9 percent for the additional Medicare tax. BAL's income is not qualified business income (QBI) so Sandra is not allowed to claim the QBl deduction. Assume that BAL will distribute all of its after-tax earnings every year as a dividend if it is formed as a C corporation. (Round your intermediate computations to the nearest whole dollar amount.) points 00:34:54 eBook Hint Print a. How much cash after taxes would Sandra receive from her investment in the first year if BAL is organized as either an LLC Referencesa C corporation? After-tax cash flow LLC 46,176 44,366 C corporation

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students