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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....

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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556064_FIN.xlsx

Corporate
Pre-tax income Proprietor 5,000,000 Pre -tax income 5,000,000 Tax paid (30%) 1500000 Tax paid (36%) 1800000 Post tax income 3,500,000 Post tax income 3,200,000 Post tax income is...

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