Corporate versus Proprietor
Not what you're looking for?
Question: You want to compare the earnings from two different legal forms for a firm: Corporate and Proprietor. Your pre-tax income is $500,000 in both. However there is a difference in the taxes you pay.
1) Corporate pays corporate tax rate of 30%. After paying corporate taxes the rest is distributed as dividends to owners. They pay personal tax on these dividends at the rate 18%.
2) Proprietor pays personal tax on 36% only.
Create an Excel worksheet in which you show the pre-tax earnings, the taxes paid, the earnings after taxes for both corporate and proprietor.
Purchase this Solution
Solution Summary
This solution shows step-by-step calculations in an Excel spreadsheet to compare between corporate and proprietor in the payment of taxes.
Purchase this Solution
Free BrainMass Quizzes
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Introduction to Finance
This quiz test introductory finance topics.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.