Part a.) $62,145 and $39,151.35 Incorrect

Part b.) s corp: 29.6% correct

b corp: 40.7% Incorrect

WI O NS-ano-answurstrema ne-would-Ro-organizou-ortor-s-corpor Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Tremaine would like to organize UTA as either an S Corporation or a corporation. In either form the entity will generate a 9 percent annual before tax return on a $1,000,000 investment. Tremaine's marginal income tax rate is 37 percent and his tax rate on dividends and capital gains is 23.8 percent (including the net investment income tax). If Tremaine organizes UTA as an Scorporation he will be allowed to claim the deduction for qualified business income. Also, because Tremaine will participate in UTA's business activities, the income from UTA will not be subject to the net investment income tax. Assume that UTA will pay out 25 percent of its after-tax earnings every year as a dividend if it is formed as a C corporation. (Do not round Intermediate calculations and round your final answers to the nearest whole dollar.) a. How much cash after taxes would Tremaine receive from his investment in the first year if UTA is organized as either an Scorporation or a C corporation? a. How much cash after taxes would Tremaine receive from his investment in the first year if UTA is organized as either an Scorporation or a C corporation? After-tax cash flow Scorporation C corporation b. What is the overall tax rate on UTA's income in the first year if UTA is organized as an Scorporation or as a C corporation? (Round your final answers to 1 decimal place.) Overall Tax Rate 29.6 Scorporation C corporation esc WI O NS-ano-answurstrema ne-would-Ro-organizou-ortor-s-corpor Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Tremaine would like to organize UTA as either an S Corporation or a corporation. In either form the entity will generate a 9 percent annual before tax return on a $1,000,000 investment. Tremaine's marginal income tax rate is 37 percent and his tax rate on dividends and capital gains is 23.8 percent (including the net investment income tax). If Tremaine organizes UTA as an Scorporation he will be allowed to claim the deduction for qualified business income. Also, because Tremaine will participate in UTA's business activities, the income from UTA will not be subject to the net investment income tax. Assume that UTA will pay out 25 percent of its after-tax earnings every year as a dividend if it is formed as a C corporation. (Do not round Intermediate calculations and round your final answers to the nearest whole dollar.) a. How much cash after taxes would Tremaine receive from his investment in the first year if UTA is organized as either an Scorporation or a C corporation? a. How much cash after taxes would Tremaine receive from his investment in the first year if UTA is organized as either an Scorporation or a C corporation? After-tax cash flow Scorporation C corporation b. What is the overall tax rate on UTA's income in the first year if UTA is organized as an Scorporation or as a C corporation? (Round your final answers to 1 decimal place.) Overall Tax Rate 29.6 Scorporation C corporation esc