Earnings for the next five years are projected to be relatively stable at about $90,000 per year.
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Earnings for the next five years are projected to be relatively stable at about $90,000 per year. The shareholders of Clay are in the 33% tax bracket.
a. Clay will reinvest its after-tax earnings in the growth of the company. Should Clay operate as a C corporation or as an S corporation?
b. Clay will distribute its after-tax earnings each year to its shareholders. Should Clay operate as a C corporation or as an S corporation?
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Related Book For
South Western Federal Taxation 2011 Taxation Of Business Entities
ISBN: 9780538498616
14th Edition
Authors: James E. Smith, William A. Raabe, David M. Maloney
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