User Account

All Pages

Different legal forms for a firm

Assignment Help Finance Basics
Reference no: EM131054244

Question: You want to compare the earnings from two different legal forms for a firm: Corporate and Proprietor. Your pre-tax income is $500,000 in both. However there is a difference in the taxes you pay.

1) Corporate pays corporate tax rate of 30%. After paying corporate taxes the rest is distributed as dividends to owners. They pay personal tax on these dividends at the rate 18%.

2) Proprietor pays personal tax on 36% only.

Create an Excel worksheet in which you show the pre-tax earnings, the taxes paid, the earnings after taxes for both corporate and proprietor.

Reference no: EM131054244

Questions Cloud

What is the present value : What is the present value of $13,750 to be received 4 years from today if the discount rate is 4.75 percent?
Differences between it and operational planning : What is Strategic planning it's traits what it involves and the main differences between it and operational planning.
Advantages and disadvantages of using generated keys : What are the advantages and disadvantages of using generated (surrogate) keys?
Cost of healthcare services : How might the ways in which we produce, deliver, and pay for care be changed in order to increase access, improve quality, and the the cost of healthcare services?
Different legal forms for a firm : Question: You want to compare the earnings from two different legal forms for a firm: Corporate and Proprietor. Your pre-tax income is $500,000 in both. However there is a difference in the taxes you pay.
What aspect would you consider most critical or important : What do you find unusual or of interest as a forensic or crime scene investigator working in today's technological environment? What in your opinion was mishandled in this case based upon what you have read regarding the case in your text?
Initial cash flow for new prroject : Samson's now wants to tear down the original structure and build a new strip mall on the site at an estimated cost of $2.3 million. What amount should be used as the initial cash flow for new prroject?
What do these changes mean for management : How have U.S. prisons changed since the big-house era? What do these changes mean for management?
Find the probability that at least three : If there are 30 people in a room, use simulation to find the probability that at least three of them will have the same birthday. (Assume that there are 365 days and all people have the equal chance to be born on each single day)

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine what is a good example of inbound logistics in a

1.an organizational resource would includea.the brand names an organization has trademarked.b.a firms formal reporting

  Identify the ten determinants of service quality describe

Identify the ten determinants of service quality. Describe two of them in a sentence or two each.

  Your bank has offered you a 15000 loan the terms of the

your bank has offered you a 15000 loan. the terms of the loan require you to pay back the loan in five equal annual

  Calculate the required rate of return

Calculate the required rate of return on a company's stock that has the following characteristics

  Analyze income statements before you invest

Can you see how cash flow problems can grow to unbelievable proportions in just a short time, even when profits look good? What does that tell you about the need to carefully read and analyze income statements before you invest?

  What are the payments for a 20-year tradition mortgage

1. What are the monthly payments for a 30-year traditional mortgage? What are the payments for a 20-year tradition mortgage? 2. Prepare an amortization table for the first six months of the traditional 30-year loan .How much of the first payment ..

  Determine the highest return investment

Determine which of the given three investments offers you the highest rate of return on your $1,000 investment over the next 5-years.

  What are the appropriate loan rates for each customer

What are the appropriate loan rates for each customer?

  Draw a cash flow timeline

Amax Manufacturing Corporation collects $225,000 each day. The cash manager has just been told of a new collection system using lockboxes that could reduce collection float from seven days to six days by decreasing mail and processing float a total o..

  Calculate future value of common stock

The last dividend paid by Klein Corporation was $2. Klein's growth rate is expected to be a constant 5 percent for next three years, after which dividends are expected to increase at a rate of 10%.

  Discuss and interpret the financials in relation to the

decide upon an initiative you want to implement that would increase sales over the next five years for example market

  Aside from the technical information

?Aside from the technical information that a client is paying a tax professional for, what are some other considerations for the communication (oral and written) with the clients and how can a tax professional develop these necessary skills? Support ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd