3 Required information The following information applies to the questions displayed below) points Tremaine would like to organize UTA as either an S Corporation or a C c a 9 percent annual before-tax return on a $1000,000 investment. Tremaine's marginal is tax rate on dividends and capital gains is 23 8 percent (including the net investment income tax) If Tremaine orga UTA as an S corporation he will be allowed to claim the deduction for qualified business income Also, because T wilf participate in UTA's business activities, the income from UTA will not be subject to the net investment Assume that UTA will pay out 100 percent of its after- tax earnings every year corporation (Round your intermediate computations to the nearest whole doller amount.) corporation. In either form, the entity will generate income tax rate is 37 percent and eBook emaine income tax as a dividend if it is formed as a C Hint Ask a. How much cash after taxes would Tremaine receive from his investment in the first year if UTA is orga corporation or a C corporation? nized as either an S After tax cash flow Print S corporation C corporation References