- Albert owns 100% of A Corporation, Betty is the sole proprietor of B Company, and Cai is the sole proprietor of C Company. - Each business generated $500,000 of taxable income and before-tax cash flow. - A Corporation and B Company produce a product, but C Company provides accounting services. - A corporation will distribute $200,000 of its after-tax income to Albert. - All three owners face a 37% marginal tax rate on ordinary income. - B Company qualifies for the 199A deduction, but C Company does not because it provides accounting services and its taxable income exceeds the threshold for that deduction. Assume the tax rate applied to dividend income equals the top 20% net long-term capital gain rate plus the 3.8% net investment income tax rate. The corporate tax rate is 21% and 199 A deduction is 20%. What will be the values of A Corporation, B Company, and C Company after three years? Assume that each business (a) required a $5,000,000 initial investment, (b) earns an annual 10% before-tax rate of return on the beginning-of-the-year investment, (c) can reinvest its after-tax cash flow back into the business, and (d) there is no unrealized appreciation of their assets