need explanation to question 9. LO.4 only please

g8. LO.2, 3, 4 Duke and Jacquie Coleman, married filing jointly, will establish a facturing business. The couple anticipates that the business will be p able immediately due to a patent that Jacquie holds; profits for the first year will be about $300,00O0 and will increase at a rate of about 20% per year for the foreseeable future. Advise the Colemans as to the form of business entity that they should selea owner of the business profi The Colemans are in the 37% Federal income tax bracket 9. LO.4 Plum Corporation will begin operations on January 1. Earnings for the nex five years are projected to be relatively stable at about $80,000 per year. The shareholders of Plum are in the 32% tax bracket. Evaluate whether Plum should operate as a C corporation or as an S corporation given the following assumptions. Plum will reinvest its after-tax earnings in the growth of the company. b. Plum will distribute its after-tax earnings each year to its shareholders. . LO.3,4 Mabel and Alan, who are in the 32% tax bracket, recently acquired a fast food franchise. Both of them will work in the business and receive a salary of $175,000. They anticipate that the annual profits of the business, after deducting alaries, will be approximately $450,000. The entity will distribute only enough cash ach year to Mabel and Alan to cover their Federal income taxes associated with any ow-through income from the franchise. Any remaining profits will be reinvested the business. What amount will the entity distrihute if th g8. LO.2, 3, 4 Duke and Jacquie Coleman, married filing jointly, will establish a facturing business. The couple anticipates that the business will be p able immediately due to a patent that Jacquie holds; profits for the first year will be about $300,00O0 and will increase at a rate of about 20% per year for the foreseeable future. Advise the Colemans as to the form of business entity that they should selea owner of the business profi The Colemans are in the 37% Federal income tax bracket 9. LO.4 Plum Corporation will begin operations on January 1. Earnings for the nex five years are projected to be relatively stable at about $80,000 per year. The shareholders of Plum are in the 32% tax bracket. Evaluate whether Plum should operate as a C corporation or as an S corporation given the following assumptions. Plum will reinvest its after-tax earnings in the growth of the company. b. Plum will distribute its after-tax earnings each year to its shareholders. . LO.3,4 Mabel and Alan, who are in the 32% tax bracket, recently acquired a fast food franchise. Both of them will work in the business and receive a salary of $175,000. They anticipate that the annual profits of the business, after deducting alaries, will be approximately $450,000. The entity will distribute only enough cash ach year to Mabel and Alan to cover their Federal income taxes associated with any ow-through income from the franchise. Any remaining profits will be reinvested the business. What amount will the entity distrihute if th