Evon would like to organize SHO as either an LLC or as a C corporation generating an 20 percent annual before-tax return on a $390,000 investment. Assume individual and corporate tax rates are both 35 percent and individual capital gains and dividend tax rates are 15 percent. SHO will pay out its after-tax earnings every year as a dividend if it is formed as a C corporation. Assume Evon is the sole owner of the entity. Ignore self-employment taxes and the net investment income tax.

a.	How much would Evon keep after taxes if SHO is organized as either an LLC or as a C corporation?

b.	What are the overall tax rates if SHO is organized as either an LLC or as a C corporation? (Round your answers to 2 decimal places.)