What is the overall tax rate on LAB's income in the first year if LAB is organized as an S corporation or as a C corporation?
Sandra would like to organize LAB (a legal corporation) as either an S corporation or a C corporation for tax purposes. In either form, the entity is expected to generate an 8 percent annual before - tax retum on a $500, 000 investment. Sandra's marginal income tax rate is 37 percent and her tax rate on qualified dividends and net
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