Required information[The following information applies to the questions displayed below.]Andrea would like to organize SHO as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, theentity is expected to generate an 12 percent annual before-tax return on a $920,000 investment. Andrea's marginalincome tax rate is 35 percent and her tax rate on dividends and capital gains is 15 percent. Andrea will also pay a 3.8percent 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 theadditional Medicare tax. Further, she is eligible to claim the deduction for qualified business income. Assume that SHO willpay out all of its after-tax earnings every year as a dividend if it is formed as a C corporation.a. 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 Ccorporation? (Round intermediate calculations and your final answers to the nearest whole dollar.)LLCC corporationAfter-tax cash flow

LLC refers to the Limited liability corporation refers to the type of company that has features of…

Answered: a. How much cash after taxes would…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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DIRECTIONS Use the information below to fill out a consumer equity form and calculate the net worth for each family. Net worth can be a useful tool to measure your financial progress from year to year. Your net worth is a grand total of all assets what vou own) minus liabilities (what vou owe: debts). It's important to understand that vour income Isn tine only Tactor that determines your wealtn. Occupation Annual Income Retirement Investments Real Estate Vehicles Credit Card Debt Emergency Fund Checking Account Household Items FAMILY A FAMILY B Nurse and Sales Appliance Installer $105,000 combined $45,000 $35,000 $22,000 Owns a house appraised at $224,000 with a mortgage balance of $202.000 Owns a house appraised at $180,000 with a mortgage balance of $126,000 New truck with Blue Book value Used sedan with retail value of $32,000; owes $35,000 of $9,500; paid for Used SUV with a retail value of $17,500; owes $14,500 $13,000 None $1.000 $5.000 $2,500 $650 Antiques: $5,000 Electronics:…
What dollar amount can you expect to receive if you file your taxes under a modest income? Select one:a. At least $350 over 12 months.b. At least $400 over 12 months.c. At least $250 over 12 months.d. At least $300 over 12 months.
Answer each of the following independent questions. Ignore personal income taxes. Required: 1. Suppose you invest $4,000 in an account bearing interest at the rate of 12 percent per year. Complete the table to show how your accumulation grows each year to equal $7,896.00 after six years. 2. You have estimated that your educational expenses over the next three years will be $14,500 per year. Your account bears interest at 9 percent per year. Complete the table given below to show that $36,699.50 is the amount you need to fund your educational expenses. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Suppose you invest $4,000 in an account bearing interest at the rate of 12 percent per year. Complete the table to show how your accumulation grows each year to equal $7,896.00 after six years. (Round your answers to 2 decimal places.) Year Beginning Balance Interest 1 2 3 4 5 6 End Balance
B. Barney and Alyson agree on the price calculated above. Ignoring tax and any other expenses, what is the effective annual return that Alyson has made on her investment? Recall that she has received 2 payments of $37 and the sale price. Give your answer as a percentage to 4 decimal places.
You give $2.1 million to your college in an irrevocable trust with the stipulation that you receive the earnings from the gift. You are guaranteed an 8% return on your investment. a. What would be the income from your gift? (Enter your answer in dollars, not millions of dollars.) Annual income $ b. How much of your gift would be a tax deduction? (Enter your answer in dollars, not millions of dollars.) Tax deduction $
1. Prior to starting college, Rita Rivera's parents deposited $15,000 in a 5-year certificate of deposit (CD) at Liberty Bank that pays 4% interest. Rita will receive the money, plus interest, if she completes her bachelor's degree at the end of the 5 years. Determine the balance in Rita's account after 5 years.
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7. The market value of Jennifer and Neil's home is $319,000. The assessed value is $280,000. The annual property tax rate is $19.70 per $1,000 of assessed value. a. What is the property tax on their home? b. How much do they pay monthly toward property taxes? Round to the nearest cent.

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a. 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? (Round intermediate calculations and your final answers to the nearest whole dollar.)