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The following Information applies to the questions displayed below Amanda would like to organize BAL as either an LLC ( taxed as a sole proprietorship

The following Information applies to the questions displayed below Amanda would like to organize BAL as either an LLC ( taxed as a sole proprietorship) or a C corporation . In either form , the entity is expected to generate an 8 percent annual before-tax return on a $ 500,000 investment Amanda's marginal income tax rate is 37 percent, and her tax rate on qualified dividends and net capital gains is 20%Assume that BAL will distribute half of its after- tax earnings every year as a dividend if it is formed as a C corporation Assume the income is not eligible for the QBI deduction . Further, when computing your answers , include the self-employment tax (use a 2.9% marginal rate for self- employment income because Amanda has salary in excess of the wage base limit) but not the additional Medicare tax or the net investment income tax. a . How much cash after taxes would Amanda receive from her investment in the first year if BAL is organized as an LLC ? What if BAL organized as a C corporation? Note: Round intermediate calculations and your final answers to the nearest whole dollar

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