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Ch 15 P 15-48 Seved 1 Part 1 of 2 8 paint Required Information Problem 15-48 (LO 15-3) (Algo) The following information apples to the
Ch 15 P 15-48 Seved 1 Part 1 of 2 8 paint Required Information Problem 15-48 (LO 15-3) (Algo) The following information apples 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 15 percent annual before-tax return on a $740,000 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 Andres 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 Will Day out all of its after tax earnings every year as a dividend if it is formed as a C corporation Boo Problem 15-48 Parta (Algo) ASK a. How much cash after taxes would Andrea receive from her investment in the first year ISHO is organized as either an LLC orac corporation? (Round Intermediate calculations and your final answers to the nearest whole dollar.) Print Attrax cash flow LLC C corporation References 2 2012 3 Required information Problem 15-48 (LO 15-3) (Algo) The following information copies to the questions displayed below! Andres would like to organize SHO as either an LLC (axed as a sont proprietorship or corporation in either form, the entity is expected to generate an 15 percent annual before tax return on a 5740.000 investment Andrea's marginal Income tax rate is 35 percent and her taxtate on dividends and captal gains is 15 percent Andrea Wilaisopaya 38 percent net investment income tax on dividends and capital gains she recogne i Andrea organizes SHO as an LLC she will be required to pay an additionat 29 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 SHOwill Day out of its after tax carnings every year as a dividend is formed as corporation Problem 15-48 Part b (Algo) b. What is the overall tax rate on SHO's income in the first year ISHO is organized as an LLC or as a corporation (Round Intermediate calculations to the nearest whole della Round your final newers to 2 decimal places Overallax Print Lic Corporation
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