Corporation AB’s marginal tax rate is 10 percent, and Corporation YZ’s marginal tax rate is 21 percent.   Required: If both corporations are entitled to an additional $6,500 deduction, how much tax savings will the deduction generate for each corporation? If both corporations are entitled to a $6,500 tax credit, how much tax savings will the credit generate for each corporation? (Assume that each corporation’s precredit tax exceeds $6,500.)

You are a shareholder in a "S" corporation. This corporation earns $4 per share before taxes. After it has paid taxes, it will distribute the remainder of its earnings to you as a dividend. The dividend is income to you, so you will then pay taxes on these earnings. The corporate tax rate is 21% and your tax rate on dividend income is 15%. The effective tax rate on your share of the corporations' earnings is closest to: WHEELSTE • 15% O 21% О 28% O 33% • 36%

Godo

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% annual before-tax return on a $200,000 investment. Andrea’s marginal income tax rate is 35% and her tax rate on dividends and capital gains is 15%. Andrea will also pay a 3.8% net investment income tax on dividends and capital gains she recognizes. If Andrea organized SHO as an LLC, Andrea will be required to pay an additional 2.9% for self-employment tax and an additional 0.9% for the additional Medicare tax. Further, she is eligible to claim the full 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.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?b. What is the overall tax rate on SHO’s income in the first year if…

A taxpayer pays 22% on the federal return for their ordinary income (including some short-term capital gains) and 15% on some long term capital gains. Assuming that the income is equally taxable to California and that the California ordinary income tax bracket for the same taxpayer is 9.3%; What rates are going to be used for taxing the long-term capital gains for the State? O 0%. LTCG rates in the 9.3% bracket are zero for those gains. O 9.3% on all income that qualifies in that bracket. The State doesn't give preferential treatment to capital gains. O 1%. The LTCG rates for all gains are a single percentage point. O 4%. LTCG rates are two brackets lower for long-term gains. Next

Amanda would like to organize BAL as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 8 percent annual before-tax return on a $500,000 investment. Amanda's marginal income tax rate is 37 percent, and her tax rate on qualified dividends and net capital gains is 20%. Assume that BAL will distribute half of its after-tax earnings every year as a dividend if it is formed as a C corporation. Assume the income is not eligible for the QBI deduction. Further, when computing your answers, include the self-employment tax (use a 2.9% marginal rate for self-employment income because Amanda has salary over $147,000 from her employer) but not the additional Medicare tax or the net investment income tax. b. What is the overall tax rate on BAL's income in the first year if BAL is organized as an LLC or as a C corporation? Note: Round intermediate calculations to the nearest whole dollar. Round your final answers to 2 decimal…

Required information [The following information applies to the questions displayed below] Amanda would like to organize BAL as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 8 percent annual before-tax return on a $500,000 investment. Amanda's marginal income tax rate is 37 percent, and her tax rate on qualified dividends and net capital gains is 20%. Assume that BAL will distribute half of its after-tax earnings every year as a dividend if it is formed as a C corporation. Assume the income is not eligible for the QBI deduction. Further, when computing your answers, include the self-employment tax (use a 2.9% marginal rate for self-employment income because Amanda has salary in excess of the wage base limit) but not the additional Medicare tax or the net investment income tax. a. How much cash after taxes would Amanda receive from her investment in the first year if BAL is organized as an LLC? What if BAL is…

Dengar

You are a shareholder in an S corporation. The corporation earns $1.67 per share before taxes. As a pass through entity, you will receive $1.67 for each share that you own. Your marginal tax rate is 20%. How much per share is left for you after all taxes are paid? Amount that remains is $ per share. (Round to the nearest cent.)

Cromwell Corporation does business in two states, A and B. State A uses an equal-weighted, three-factor apportionment formula and has a 5 percent state tax rate. State B uses an apportionment formula that double-weights the sales factor and has a 6 percent state tax rate. Cromwell's state-level taxable income, before apportionment, is $3.5 million. It has identified the following components of its sales, payroll, and property factors: Sales Payroll Average property Required: State A $ 7,500,000 3,500,000 2,500,000 State B $ 4,750,000 2,700,000 1,550,000 Total $ 12,250,000 6,200,000 4,050,000 a. Calculate Cromwell's apportionment factors, income apportioned to each state, and state tax liability. b. State B is considering changing its apportionment formula to place 100 percent of the weight on the sales factor, ignoring payroll and property for apportionment purposes. Given its current levels of activity, what would Cromwell's state tax liability be for each state? Answer is not…