Paula is starting a new business and deciding whether to organize it as an LLC or a C corporation. She projects that the business will have a net loss for tax purposes of $$200,000$ in $2022($the first year of operations$).$ She then expects the business to have taxable income of $$10,000$ in $2023$ and taxable income of $$300,000$ in $2024.$ The following assumptions apply:

Paula's individual marginal tax rate is $37\%$ and the corporate tax rate is $21\%.$

Assume a discount rate of $5\%$

Paula is not subject to any limitations on deducting flow$-$through losses on her individual return

The business will not distribute any money to Paula during these three years

Ignore the QBI deduction and self$-$employment taxes

Calculate the NPV of the tax cost or benefit if she organizes as an LLC or if she organizes as a C corporation. Enter any tax COST as a negative number; enter any tax BENEFIT as a positive number.HINT: If you need to carry forward any net operating losses, recall the NOL carryover rules! $1.$ Tax cost or benefit if LLC: $\_\_\_\_\_\_\_2.$ Tax cost or benefit if C Corporation: $\_\_\_\_\_\_\_\_\_\_$