Required Information Problem 15-48 (LO 15-3) (Algo) {The following information applies to the questions displayed below) Andrea would like to organize SHO as either an LLC (taxed as a sole proprietorship) or a corporation. In either form, the entity is expected to generate an 15 percent annual before-tax return on a $740,000 investment Andrea's marginal income tax rate is 35 percent and her tax rate on dividends and capital gains is 15 percent Andrea will also pay a 3.8 percent net investment income tax on dividends and capital gains she recognizes. If Andrea organizes SHO as an LLC. she will be required to pay an additional 2.9 percent for self-employment tax and an additional 0.9 percent for the additional Medicare tax. Further, she is eligible to claim the deduction for qualified business Income. Assume that SHO will pay out all of its after-tax earnings every year as a dividend if it is formed as a C corporation Problem 15-48 Part a (Algo) a. How much cash after taxes would Andrea receive from her investment in the first year if SHO is organized as either an LLC or ac corporation? (Round Intermediate calculations and your final answers to the nearest whole dollar.) After-tax cash flow $ 68.540 LLC C corporation Required Information Problem 15-48 (LO 15-3) (Algo) [The following information applies to the questions displayed below.) Andrea would like to organize SHO as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 15 percent annual before-tax return on a $740,000 investment. Andrea's marginal Income tax rate is 35 percent and her tax rate on dividends and capital gains is 15 percent. Andrea will also pay a 3.8 percent net investment income tax on dividends and capital gains she recognizes. If Andrea organizes SHO as an LLC, she will be required to pay an additional 29 percent for self-employment tax and an additional 0.9 percent for the additional Medicare tax Further, she is eligible to claim the deduction for qualified business income. Assume that SHO will pay out all of its after tax earnings every year as a dividend if it is formed as a C corporation Problem 15-48 Part b (Algo) b. What is the overall tax rate on SHO's income in the first year if SHO is organized as an LLC or as a C corporation? (Round Intermediate calculations to the nearest whole dollar. Round your final answers to 2 decimal places.) Overall Tax Rate LLC C corporation 96 Required Information Problem 15-49 (LO 15-3) (Algo) [The following information applies to the questions displayed below) Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $135,000 of business income from WCC for the year. Jacob's marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self- employment tax and 0.9 percent additional Medicare tax (Round your Intermediate calculations to the nearest whole dollar amount.) Problem 15-49 Part a (Algo) Q. What is the amount of tax Jacob will owe on the income allocation if the income is not qualified business income? Tac owed income is not B Required Information Problem 15-49 (LO 15-3) (Algo) [The following information applies to the questions displayed below) Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $135,000 of business income from WCC for the year. Jacob's marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self- employment tax and 0.9 percent additional Medicare tax. (Round your Intermediate calculations to the nearest whole dollar amount.) Problem 15-49 Part b (Algo) b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QBI) and Jacob qualities for the full QB1 deduction? Tax owed if income is BI Required Information Problem 15-51 (LO 15-3) (Algo) [The following information applies to the questions displayed befow.) Sandra would like to organize LAB as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 15 percent annual before-tax return on a $680,000 investment Sandra's marginal income tax rate is 37 percent, and her tax rate on dividends and capital gains is 23.8 percent (including the 3.8 percent net investment income tax). If Sandra organizes LAB as an LLC. she will be required to pay an additional 2.9 percent for self-employment tax and an additional 0.9 percent for the additional Medicare tax LAB's income is not qualified business Income (QBI) so Sandra is not allowed to claim the QBI deduction. Assume that LAB will distribute all of its after-tax earnings every year as a dividend if it is formed as a C corporation, (Round your intermediate computations to the nearest whole dollar amount.) Problem 15-51 Part a (Algo) a. How much cash after taxes would Sandra receive from her investment in the first year if LAB is organized as either an LLC or a C corporation? After-tax cash flow Lic C corporation I Required Information Problem 15-51 (LO 15-3) (Algo) [The following information applies to the questions displayed below) Sandra would like to organize LAB as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 15 percent annual before-tax return on a $680.000 investment. Sandra's marginal income tax rate is 37 percent, and her tax rate on dividends and capital gains is 23.8 percent (including the 3.8 percent net investment income tax). If Sandra organizes LAB as an LLC, she will be required to pay an additional 2.9 percent for self-employment tax and an additional 0.9 percent for the additional Medicare tax. LAB's income is not qualified business income (QBI) so Sandra is not allowed to claim the QB deduction. Assume that LAB will distribute all of its after-tax earnings every year as a dividend if it is formed as a C corporation (Round your Intermediate computations to the nearest whole dollar amount.) Problem 15-51 Part b (Algo) b. What is the overall tax rate on LAB's income in the first year if LAB is organized as an LLC or as a C corporation? (Round your final answers to 2 decimal places.) Overall Tax Rate 40.80% LLC C corporation