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%
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
a. 8,675,309 1
b. 57,968
c. 128,000
d. 163,200