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The 11,700 is correct but the 9,945 is not. Please help me with the C Corp Required information [The following information applies to the questions
The 11,700 is correct but the 9,945 is not. Please help me with the C Corp
Required information [The following information applies to the questions displayed below. Andrea would like to organize SHO as either an S corporation or as a C corporation generating a 9 percent annual before-tax return on a $200,000 investment. Assume individual and corporate tax rates are both 35 percent and individual capital gains and dividend tax rates are 23.8 percent (including the net investment income tax). SHO will pay out its after-tax earnings every year as a dividend if it is formed as a C corporation. Assume Andrea is the sole owner of the entity and she materially participates in the business a. How much would Andrea keep after taxes if SHO is organized as either an S corporation or as a C corporation? (Round your intermediate calculations to the nearest whole dollar amount.) S corporation$ C corporation After-Tax Earnings 11,700 9,945Step by Step Solution
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