Hello,

How to compute this problem. The solution I was getting the first time doesn't work. It was incorrect.

Required information [The following information applies to the questions displayed below] Sandra 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 13 percent annual beforetax return on a $750,000 investment. Sandra's marginal

income tax rate is 37 percent and her tax rate on dividends and capital gains is 23.8 percent (including the 3.8 percent net

investment income tax). If Sandra organizes BAL as an LLC, she will be required to pay an additional 2.9 percent for self

employment tax and an additional 0.9 percent forthe additional Medicare tax. BAL's income is not qualied business

income (QBI) so Sandra is not allowed to claim the QBI deduction. Assume that BAL will distribute all of its after-tax

earnings every year as a dividend if it is formed as a C corporation. (Round your intermediate computations to the nearest whole dollar amount.) L a. How much cash after taxes would Sandra receive from her investment in the first year if BAL is organized as either an LLC or a C

corporation?