![subject](/tpl/images/cats/ekonomika.png)
Business, 15.07.2020 03:01 Adolfosbaby
Agatha is planning to start a new business venture and must decide whether to operate as a sole proprietorship or incorporate. She projects that the business will generate annual cash flow and taxable income of $100,000. Agatha’s personal marginal tax rate, given her other sources of income, is 37 percent and she qualifies for the 20 percent rate on dividend income. (Ignore any employment tax consequences.)
a) If Agatha operates the business as a sole proprietorship, calculate the annual after-tax cash flow available for reinvestment in the business venture. Assume the sole proprietorship will qualify for the 20 percent QBI deduction.
b) If Agatha operates the business as a regular (C) corporation that makes no dividend distributions, calculate the annual after-tax cash flow available for reinvestment in the business.
c) Now suppose that Agatha wishes to withdraw $20,000 per year from the business and will reinvest any remaining after-tax earnings. If the business is operated as a sole proprietorship, how much after-tax cash flow will remain for reinvestment in the business? How much after-tax cash flow will Agatha have from the withdrawal?
d) If the business is operated as a C corporation and withdrawal in the form of a dividend is made for $20,000, how much after-tax cash flow will remain for reinvestment in the business? How much after-tax cash flow will Agatha retain from the dividend?
![ansver](/tpl/images/cats/User.png)
Answers: 1
![](/tpl/images/ask_question.png)
![](/tpl/images/ask_question_mob.png)
Another question on Business
![question](/tpl/images/cats/ekonomika.png)
Business, 21.06.2019 17:00
While information systems can be used to gain a strategic advantage, they have inherent risks. hershey foods, for example, crippled its halloween sales when its complex is system failed to support its supply and inventory needs during peak production season. this is an example of which specific is risk
Answers: 3
![question](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 05:30
Eliza works for a consumer agency educating young people about advertisements. instead of teaching students to carefully read advertisement claims, she encourages them to develop a strong sense of self and to keep their life goals and dreams separate from commercial products. why might eliza's advice make sense?
Answers: 2
![question](/tpl/images/cats/ekonomika.png)
![question](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 13:30
Tom has brought $150,000 from his pension to a new job where his employer will match 401(k) contributions dollar for dollar. each year he contributes $3,000. after seven years, how much money would tom have in his 401(k)?
Answers: 3
You know the right answer?
Agatha is planning to start a new business venture and must decide whether to operate as a sole prop...
Questions
![question](/tpl/images/cats/en.png)
English, 02.12.2021 19:50
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/fizika.png)
Physics, 02.12.2021 19:50
![question](/tpl/images/cats/fizika.png)
![question](/tpl/images/cats/mat.png)
Mathematics, 02.12.2021 19:50
![question](/tpl/images/cats/informatica.png)
Computers and Technology, 02.12.2021 19:50
![question](/tpl/images/cats/informatica.png)
Computers and Technology, 02.12.2021 19:50
![question](/tpl/images/cats/en.png)
![question](/tpl/images/cats/mat.png)
Mathematics, 02.12.2021 19:50
![question](/tpl/images/cats/informatica.png)
Computers and Technology, 02.12.2021 19:50
![question](/tpl/images/cats/informatica.png)
Computers and Technology, 02.12.2021 19:50
![question](/tpl/images/cats/en.png)
English, 02.12.2021 19:50
![question](/tpl/images/cats/istoriya.png)
History, 02.12.2021 19:50
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/mat.png)
Mathematics, 02.12.2021 19:50
![question](/tpl/images/cats/mat.png)
Mathematics, 02.12.2021 19:50
![question](/tpl/images/cats/informatica.png)
Computers and Technology, 02.12.2021 19:50
![question](/tpl/images/cats/en.png)
![question](/tpl/images/cats/mat.png)