marly as sha employees ell what tax issoes should you have yolli Taxes. Rick owns investments ual before-tax rate ot return) tax income would be if h PROBLEMS Cs-21 Using C C sing Corporation to Avorid Income Taxes. Rick income per years after tax income would be ifh in each determine how much higher or lower Rick's aft investments to his wholly-own S20, 000 of ordinary income per year (4% annual before-tax C wned corporation rather than owning them ing the corporation immediately distributes its after-tax income to Ricl His investment income is subject to the 3.8% net investment income His investment income is not subject to the 3.8% net investment inom tied di as a qualify qualif 37% for ordinary income and 20% for qualified dividend ualified dividen tax a. Rick's marginal tax rate is b. Rick's marginal tax rate is 22%for ordinary income and 15% fore c Assume that all the investment's after-tax income will be whether Rick transfers the investments to his wholly-owned corporatnya the investments himself. How would your answers to Parts a and beo n five siruation