Pear, an individual, plans to start a small business, which will operate as a corporation. In year o, she expects the corporation to generate an ordinary loss of $1,800,000. Subsequently, she expects the corporation to be profitable, and projects ordinary profit of $2,700,000 in year 1, and $4,500,000 in year 2. Pear's personal marginal tax rate on ordinary income is 37 Assuming a corporate tax rate of 21% and a 10% discount rate, calculate the present value of expected tax costs on the business earnings for the first 3 years of operations if the business makes an Scorporation election Assume the excess business loss limitation does not apply. Round your discount rate calculations to three decimal places. O $1,698,300 $952.380 $2,138,400 $1,617,381 Mr. and Mrs. Berry are equal partners in a family partnership. Mr. and Mrs. Berry's marginal tax rate is 35%. Next year, the partnership is expected to generate $1,100,000 of ordinary income. The Berry's are considering transferring 20% interests in the partnership to each of their two children. Their daughter, Straw, has a 12% marginal tax rate. Their son, Rasp, has a 22% marginal tax rate. Calculate the expected annual tax savings to the family from the proposed transfer of partnership interests. $88.000 $154,000 $79.200 $77,000