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

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 9MC: Assume that a corporation has $100,000 of taxable income from operations plus $5,000 of interest...
icon
Related questions
Question

1

 

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
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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College