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Return to question ts Required information Problem 15.48 (LO 15-3) (Algo) The following information applies to the questions displayed below) Andrea would like to organize SHO as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 12 percent annual before tax return on a $650,000 investment Andrea's marginal income tax rate is 35 percent and her tax rate on dividends and capital gains is 15 percent. Andrea will also pay a 3.8 percent net investment income tax on dividends and capital gains she recognizes. If Andrea organizes SHO as an LLC she will be required to pay an additional 2.9 percent for self-employment tax and an additional 0.9 percent for the additional Medicare tax. Further, she is eligible to claim the deduction for qualified business income. Assume that SHO wil pay out all of its after-tax earnings every year as a dividend if it is formed as a C corporation Problem 15-48 Part a (Algo) 3. How much cash after taxes would Andrea receive from her investment in the first year ISHO is organized as either an LLC or ac corporation (Round intermediate calculations and your final answers to the nearest whole dollar) Answer is complete but not entirely correct. Anar-tax cash flow LLC s (47.730) corporation 5 14.664 nit 2 Check my w 2012 Required information Problem 15-48 (LO 15-3) (Algo) The following information applies to the questions displayed below) Andrea would like to organize SHO as either an LLC (axed as a sole proprietorship or a C corporation. In either form, the entity is expected to generate an 12 percent annual before tax return on a $650,000 investment Andrea's marginal income tax rate is 35 percent and her tax rate on dividends and capital gains is 15 percent Andres will also pay a 38 percent net investment income tax on dividends and capital gains she recognizes. If Andrea organizes SHO as an LLC. she will be required to pay an additional 2.9 percent for self-employment tax and an additional 09 percent for the additional Medicare tox. Further, she is eligible to claim the deduction for qualified business Income. Assume that SHO will pay out all of its after-tax earnings every year as a dividend if it is formed as a corporation, med ok Problem 15-48 Part b (Algo) b. What is the overall tax rate on SHO's income in the first year if SHO is organized as an LLC or as a corporation? (Round intermediate calculations to the nearest whole dollar. Round your final answers to 2 decimal places.) Overall Tax Rate LLC corporation