Tremaine would like to organize UTA as either an S Corporation or a C Corp. In both forms, the entity will generate a 9% annual before-tax return on a $1,000,000 investment. Tremaine's marginal income rate is 37%, and his tax rate on dividends and capital gains is 23.8%, including the net investment income tax. If Tremaine organizes UTA as an S Corp, he will be allowed to claim the deduction for qualified business income. Also, because Tremaine will participate in UTA's business acrivities, the income from UTA will not be subject to the net investment income tax. Assume that UTA Will pay out 25 % of its after tax earnings every year as a dividend if it is form as a C corporation.

A. How much cash after taxes would Tremaine receive from his investment in the first year if UTA is organized either as an S Corp or a C Corp?

B. Deduction for qualified business income? (If none, type 0)

C. Net investment income tax linability? (If none, type 0)

D. Self employment tax liability? (If none, type 0)

E. Additional medicare tax liability? (If none, type 0)