Question 2 An individual investor with $400,000 of annual taxable income purchased land for $120,000 and now has an offer to sell it for $150,000. The individual is already in the 35% federal ordinary income tax bracket and pays a 0% state tax rate in Michigan on ordinary income. The applicable federal long term capital gains tax rate is 15% but there is no corresponding reduction at the state level. State income taxes are deductible in computing federal taxable income. a) Calculate the after tax profit for the sale if it occurred 8 months after the date of purchase (8 pts) b) Calculate the after tax profit for the sale if it occurred 13 months after the date of purchase? (8 pts) c) How would you approach parts a) and b) if the investor was a C-Corporation? Assume this is 2019 tax values. (3 pts) d) List 3 different business entities and include a benefit of cach. (6 pts) e) What does FICA stand for and what rate does a sole proprietor pay? (2 pts) f) You are a single person living in Missouri who earned $80,000 in 2019. Missouri State taxes at 6.25% are $5000 meaning you have to pay federal tax on the remaining $75,000. You had $14,000 taken out of your paychecks throughout the year which is too much. Using the provided 2019 Federal tax table, how much will be in your federal tax refund check? (12 pts) 2019 Tax Brackets 513150 10 9700 S9701 - 343.861 - $9,701 - $19.401 - 578.950 52675 $ 530470- $3976 - 15168.400 S34 200 2 700 564201 - 5100 725 554201 - $100.700 401-5321450 584201 - 5160725 5160720- 04100 $150.701 - 0400 $160.726 - 451-408.200 325 04.100 5304101 - 5204101 - 5510,300 5204 101 - 201 - 5612,300 35 510,300 5510 301 3305751 5510,301 512 351 or more 37" more