Question: Please help me with this question, thank you Question 1 [14 points} David would like to organize HOS (a business entity) as a corporation taxed

Please help me with this question, thank you

Please help me with this question, thank you
Question 1 [14 points} David would like to organize HOS (a business entity) as a corporation taxed as either an S-corporation or a Ccorporation. David projects HOS will generate a 12 percent annual before-tax relum on a $500,000 investment. David's marginal tax rate is 37 percent, and the corporate tax rate is 21 percent. David's marginal tax rate on individual capital gains and dividends is 233% (20% + 3.8% NIlT). HOS will payout 100% of its aftertax earnings every year to its shareholders. If HOS is taxed as an S-corporation, David's business income ailocation would be subject to a 3.8 percent net investment income tax (he is a passive investor in the business). The business income allocation qualies for the qualied business income deduction. a} What is David's after-tax income if HOS is organized as either an S corporation or a C corporation (show your work)? b) What are the overall tax rates (combined owner and entity level) if HOS is organized as either an S corporation or a C. corporation {show your work}? c) Which tax entity classication should David form HOS

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