Assume the pre-tax profit of $50,000 has been earned by a business, and the owner/proprietor wants to withdraw all of the after-tax profit for personal use. Assume the tax rate for a C corporation is 33%, while the rate for a person is 25%. Find the after-tax earnings available under the corporate and proprietorship forms of business.© BrainMass Inc. brainmass.com June 4, 2020, 2:32 am ad1c9bdddf
The pre-tax profit is $50,000 and the owner wants all money after taxes have been paid for personal ...
The solution shows the exact calculations for determining after-tax earnings for a corporation and a sole proprietorship.