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Amanda would like to organize BAL as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is

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Amanda 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 8 percent annual before-tax return on a $500,000 investment. Amanda's marginal income tax rate is 37 percent, and her tax rate on qualified dividends and net capital gains is 20%. Assume that BAL will distribute half of its after-tax earnings every year as a dividend if it is formed as a C corporation. Assume the income is not eligible for the QBI deduction. Further, when computing your answers, Include the self-employment tax (use a 2.9% marginal rate for self-employment Income because Amanda has salary over $147,000 from her employer) but not the additional Medicare tax or the net investment income tax. . How much cash after taxes would Amanda recelve from her investment in the first year if BAL is organized as an LLC? What if BAL is organized as a C corporation? Note: Round Intermedlate calculations and your final answers to the nearest whole dollar. Answer is complete but not entirely correct

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