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0) David would like to organize HOS (a business entity) as either an score Potaton (taxed as a C corporation) generating a 12 percent annual

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0) David would like to organize HOS (a business entity) as either an score Potaton (taxed as a C corporation) generating a 12 percent annual before taxe investment. David's marginal tax rate is 24 percent and the corporate tax rate is 21 percent. marginal tax rate on individual capital gains and dividends is 15 percent. HOS will pay out its after-tax earnings every year to ei ex earnings every year to either its members or its shareholders. If HOS is taxed as an S corporation, David's business income allocation would be subject to a 3.8 percent net investment income tax (he is a passive investor in the business), and the business income allocation would qualify for the deduction for qualified business income. a. How much would David keep after taxes if HOS is organized as either an S corporation or a C corporation? (4%) 3000 Actung b. What are the overall tax rates (combined owner and entity level) if HOS is organized as either an S corporation or a C corporation? (3%)

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