Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How can I solve this question? If you and your friend contribute $ 50,000 respectively to register a consulting office, what type of economic equity

How can I solve this question?

image text in transcribed

If you and your friend contribute $ 50,000 respectively to register a consulting office, what type of economic equity is the office (Sole proprietorship/partnership/corporation/limited liability company) When the office earns a profit of $ 70,000 at the end of yrl, both of you decide to keep 60% of the profits as reinvestment. How much dividend you can get after tax? The corporate tax rate is 30% and individual income tax rate is 15% Your friendgot a 1-year bank loan of $ 60,000 for the operation of the office at the beginning of yr2. The net profits of yr2 are $30,000. How much liabilities you have to undertake for the bank loan

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Handbook Of European Fixed Income Securities

Authors: Frank J. Fabozzi, Moorad Choudhry

1st Edition

0471430390, 978-0471430391

More Books

Students also viewed these Finance questions