Mr. and Mrs. Benson invested in a business that will generate the following cash flows over a three- year period. Year o Year 1 Year 2 Taxable 60,000 40,000 30,000 revenue Deductible (10,000) (10,000) (10,000) expenses If the Benson's marginal tax rate over the three-year period is 20% and they use a 6% discount rate, compute the NPV of the transaction. $75,996 $76,940. $76,872 $70,413 Which of the following is most likely a violation of the Assignment of Income Doctrine? Taxpayer A wholly owns a partnership and a C corporation. Taxpayer A legally transfers income from the partnership to the corporation so the income will be taxed at corporate rates instead of individual rates applicable to partnerships. A father transferring part of his wages to his son Afather transferring stocks by gift to his daughter so she can pay tax on the dividends at a lower tax rate A father sells his car to his daughter and pays tax on the gain Johnson, Inc. received a $100,000 cash payment, of which only $60,000 was taxable income. If Johnson's marginal tax rate is 37%, compute Johnson's after-tax cash flow. $40,000 $65,300 $60,000 $77,800 The Tax Act of 2017 significantly increased the standard deduction so that more taxpayers in the lower income levels would not be subject to income taxes. Which of the following statements is true? The tax law is intended to improve the convenience of the tax. The tax law is intended to improve the simplicity of the tax. The tax law is intended to improve the efficiency of the tax. The tax law is intended to improve the equity of the tax