Using the same information, what is the amount of the S Corporation premium if the cash flow for the C Corp & S Corp is $250,000? Assumptions: Corporate Tax Rate = 21% %3D Combined Individual Tax Rate =30% Qualified Business Income Deduction=20% All income is distributed, individual dividend tax rate=20% Capitalization Rate=25% Business Type: Accounting Firm Cash Flow before Taxes
Using the same information, what is the amount of the S Corporation premium if the cash flow for the C Corp & S Corp is $250,000? Assumptions: Corporate Tax Rate = 21% %3D Combined Individual Tax Rate =30% Qualified Business Income Deduction=20% All income is distributed, individual dividend tax rate=20% Capitalization Rate=25% Business Type: Accounting Firm Cash Flow before Taxes
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Using the same information, what is the amount of the S Corporation
premium if the cash flow for the C Corp & S Corp is $250,000?
Assumptions:
Corporate Tax Rate = 21%
%3D
Combined Individual Tax Rate =30%
Qualified Business Income Deduction=20%
All income is distributed, individual dividend tax rate=20%
Capitalization Rate=25%
Business Type: Accounting Firm
Cash Flow before Taxes
8,675,309
157,968
128,000
163,200
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