Question

Required Information The following information applies to the questions displayed below. Sandra would like to organize BAL as elther an LLC (taxed as a sole proprietorshlp) or a C corporation. In elther form, the entity is expected to generate an 14 percent annual before-tax return on a $580,000 Investment. Sandras marginal Income tax rate Is 37 percent and her tax rate on dividends and capital galns 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 29 percent for self- employment tax and an additional 0.9 percent for the additional Medicare tax. BALs Income Is not qualified business Income (QBI) so Sandrais not allowed to clalm 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.) a. How much cash after taxes would Sandra recelve from her Investment In the first year If BAL Is organized as elther an LLCora C corporation? After-tax cash flow LLC C corporation

Question A. C Corp answer is 48,881

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Date : Page No CARI BAL as LLC 3004+23598+ 730-8 33/29-6 81200 dividodl dliz tributiona 30044+ 164778 60218 82oo 56 67Date : Page No. Znues tent tan retum 1481,2 ctrn@lyソーー 30,0Yy 51156 730 48070 しめ.. Selk-Amploym ent tad (g) 2.92 23548 Lus: a

Add a comment
Know the answer?
Add Answer to:
Question A. C Corp answer is 48,881 Required Information The following information applies to the questions...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Required information The following information applies to the questions displayed below.] Sandra would like to organize...

    Required information 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 13 percent annual before-tax return on a $750,000 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...

  • Below is the required information 0 Required information The following information applies to the questions displayed...

    Below is the required information 0 Required information 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...

  • Required in The following information applies to the questions displayed below. formation Sandra would like to...

    Required in The following information applies to the questions displayed below. formation 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 13 percent annual before-tax return on a $750,000 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...

  • Sandra would like to organize BAL as either an LLC (taxed as a sole proprietorship) or...

    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 9 percent annual before-tax return on a $530,000 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...

  • Sandra would like to organize BAL as either an LLC (taxed as a sole proprietorship) or...

    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 9 percent annual before-tax return on a $530,000 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...

  • Sandra would like to organize BAL as either an LLC (taxed as a sole proprietorship) or...

    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 9 percent annual before-tax return on a $530,000 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...

  • Required information The following information applies to the questions displayed below) Sandra would like to organize...

    Required information The following information applies to the questions displayed below) Sandra would like to organize LAB as either an LLC (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. 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...

  • Sandra would like to organize BAL as either an LLC (taxed as a sole proprietorship) or...

    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 10 percent annual before-tax return on a $630,000 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...

  • [The following information applies to the questions displayed below. Sandra would like to organize LAB as...

    [The following information applies to the questions displayed below. Sandra would like to organize LAB as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 10 percent annual before-tax return on a $720,000 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 LAB as...

  • b what is the overall tax rate on BALs income in the first year if bal...

    b what is the overall tax rate on BALs income in the first year if bal is organized as an LLC or as a c corp Required information 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 ac corporation in either form, the entity is expected to generate an 7 percent annual before-tax return on a $690.000 investment. Sandra's marginal income tax rate is...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT