D You are advising a high school basketball coach on whether to organize his summer basketball camps for elementary school children as a C corporation versus an S corporation. The coach plans to invest $10,000 in the corporation, operate the camps for 5 years, and then liquidate the corporation. If the business operates as a C corporation, the coach can recover his basis in the C corporation shares and pay tax on capital gains at a rate of 15%. The coach's marginal individual income tax rate is 32%. If the business operates as an S corporation, the coach is eligible for the QBI deduction because the athletic camp industry is not a QBI-prohibited industry. The expected pre-tax rate of return on the camps is 12% Question 1 Provide the following inputs to the formulas for the after-tax rate of return to the business. Length of investment horizon [Select] Before-tax rate of return [Select] Marginal tax rate, adjusted for QBI, if applicable [Select] Individual capital gains tax rate [Select] C corporation tax rate [Select] 25 pts If the business is organized as a S corporation, the annual after-tax rate of return is_ NOTE: Round your final answer to two decimal places and do not enter a %. For example, if your calculated answer is 5.226%, enter 5.23 Question 3 If the business is organized as a C corporation, the annual after-tax rate of return is Note: Round your final answer to two decimal places and do not enter a %. For example, if your calculated answer is 5.226%, enter 5.23. 20 pts What is the minimum annual C corporation after-tax rate of return that will make Tom's business as a C corporation equivalent to an S corporation? Note: Round your final answer to two decimal places and do not enter a %. For example, if your calculated answer is 5.226%, enter 5.23. D You are advising a high school basketball coach on whether to organize his summer basketball camps for elementary school children as a C corporation versus an S corporation. The coach plans to invest $10,000 in the corporation, operate the camps for 5 years, and then liquidate the corporation. If the business operates as a C corporation, the coach can recover his basis in the C corporation shares and pay tax on capital gains at a rate of 15%. The coach's marginal individual income tax rate is 32%. If the business operates as an S corporation, the coach is eligible for the QBI deduction because the athletic camp industry is not a QBI-prohibited industry. The expected pre-tax rate of return on the camps is 12% Question 1 Provide the following inputs to the formulas for the after-tax rate of return to the business. Length of investment horizon [Select] Before-tax rate of return [Select] Marginal tax rate, adjusted for QBI, if applicable [Select] Individual capital gains tax rate [Select] C corporation tax rate [Select] 25 pts If the business is organized as a S corporation, the annual after-tax rate of return is_ NOTE: Round your final answer to two decimal places and do not enter a %. For example, if your calculated answer is 5.226%, enter 5.23 Question 3 If the business is organized as a C corporation, the annual after-tax rate of return is Note: Round your final answer to two decimal places and do not enter a %. For example, if your calculated answer is 5.226%, enter 5.23. 20 pts What is the minimum annual C corporation after-tax rate of return that will make Tom's business as a C corporation equivalent to an S corporation? Note: Round your final answer to two decimal places and do not enter a %. For example, if your calculated answer is 5.226%, enter 5.23. D You are advising a high school basketball coach on whether to organize his summer basketball camps for elementary school children as a C corporation versus an S corporation. The coach plans to invest $10,000 in the corporation, operate the camps for 5 years, and then liquidate the corporation. If the business operates as a C corporation, the coach can recover his basis in the C corporation shares and pay tax on capital gains at a rate of 15%. The coach's marginal individual income tax rate is 32%. If the business operates as an S corporation, the coach is eligible for the QBI deduction because the athletic camp industry is not a QBI-prohibited industry. The expected pre-tax rate of return on the camps is 12% Question 1 Provide the following inputs to the formulas for the after-tax rate of return to the business. Length of investment horizon [Select] Before-tax rate of return [Select] Marginal tax rate, adjusted for QBI, if applicable [Select] Individual capital gains tax rate [Select] C corporation tax rate [Select] 25 pts If the business is organized as a S corporation, the annual after-tax rate of return is_ NOTE: Round your final answer to two decimal places and do not enter a %. For example, if your calculated answer is 5.226%, enter 5.23 Question 3 If the business is organized as a C corporation, the annual after-tax rate of return is Note: Round your final answer to two decimal places and do not enter a %. For example, if your calculated answer is 5.226%, enter 5.23. 20 pts What is the minimum annual C corporation after-tax rate of return that will make Tom's business as a C corporation equivalent to an S corporation? Note: Round your final answer to two decimal places and do not enter a %. For example, if your calculated answer is 5.226%, enter 5.23.