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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 percent annual beforetax return on a $ investment Amanda's marginal income tax rate is percent, and her tax rate on qualified dividends and net capital gains is 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 selfemployment tax use a 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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