Computing the pre-tax earning-taxes paid


You want to compare the earnings from two different legal forms for a firm: Corporate and Proprietor. Your pre-tax income is $5000,000 in both. however there is a difference in the taxes you pay.

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%.

Proprietor pays personal tax on 36% only.

Create an Excel worksheet in which you show the pre-tax earning, the taxes paid, the earnings after taxes for both corporate and proprietor.

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Finance Basics: Computing the pre-tax earning-taxes paid
Reference No:- TGS056427

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