McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

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Evon would like to organize SHO as either an LLC or as a C corporation generating a 9 percent annual before-tax return on a $200,000 investment.Assume individual and corporate tax rates are both 35 percent and individual capital gains and dividend tax rates are 15 percent.SHO will pay out its after-tax earnings every year as a dividend if it is formed as a corporation.Assume Evon is the sole owner of the entity and ignore self-employment taxes.a.How much would Evon keep after taxes if SHO is organized as either a C corporation or an LLC?
b.What are the overall tax rates if SHO is organized as either an LLC or a C corporation?