How much cash after taxes would andrea receive

Assignment Help Cost Accounting
Reference no: EM133006787

Problem - Andrea would like to organize SHO as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 11 percent annual before-tax return on a $890,000 investment. Andrea's marginal income tax rate is 35 percent and her tax rate on dividends and capital gains is 15 percent. Andrea will also pay a 3.8 percent net investment income tax on dividends and capital gains she recognizes. If Andrea organizes SHO as an LLC, Andrea will be required to pay an additional 2.9 percent for self-employment tax and an additional 0.9 percent for the additional Medicare tax. Further, she is eligible to claim the deduction for qualified business income. Assume that SHO will pay out all of its after-tax earnings every year as a dividend if it is formed as a C corporation.

How much cash after taxes would Andrea receive from her investment in the first year if SHO is organized as either an LLC or a C corporation.

Reference no: EM133006787

Questions Cloud

How much must he have in his retirement account : Andrew would like a retirement income of $3,000 per month for 24 years once he retires. How much must he have in his retirement account
Examples of inappropriate work-place attire : What are some of the voice qualities that can affect message meaning?
How much must they deposit at the end of every six months : Mountain Equipment Co-op has just issued $1,000,000 in 10-year bonds. How much must they deposit at the end of every six months
Determine the material and conversion costs to be assigned : Materials cost is $10 per unit and conversion costs are $11 per unit. Determine the material and conversion costs to be assigned to the units transferred
How much cash after taxes would andrea receive : How much cash after taxes would Andrea receive from her investment in the first year if SHO is organized as either an LLC or a C corporation
Prepare multiple columns income statement : Samson company has adjusted account balances as of December 31, 2015 - Prepare multiple columns income statement
What is the purpose of the create new year function : What is the purpose of the Create New Year function? Explain segments that are used in account numbers. How many segments can be used in an account number
Calculate the net present value of the proposed equipment : Calculate the net present value of the proposed equipment purchase. Pronghorn uses a 11% discount rate
Compute the npv of this project : The current exchange rate is €1.14/CAD. DavidLee has a Canada cost of capital of 12.5%. Compute the NPV of this project. Is it worth to invest

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

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!

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