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$[The$ following information applies $to$ the questions displayed below.$]$

Amy $is$ evaluating the cash flow consequences $of$ organizing her business entity SHO $asanLLC(taxedas$ a sole proprietorship$),anS$ corporation, $oraC$ corporation. She used the following assumptions $to$ make her calculations:

For all entity types, the business reports $$22,000of$ business income before deducting compensation paid $to$ Amy and payroll taxes SHO pays $on$ Amy's behalf.

All entities use the cash method $of$ accounting.

$If$ Amy organizes SHO $asanS$ corporation $oraC$ corporation, SHO will pay Amy $a$ $$5,000$ annual salary $(assume$ the salary $is$ reasonable for purposes $of$ this problem$).$ For both the $S$ and $C$ corporations, Amy will pay $7\mathrm{.}65$ percent FICA tax $on$ her salary and SHO will also pay $7\mathrm{.}65$ percent FICA tax $on$ Amy's salary $(the$ FICA tax paid $by$ the entity $is$ deductible $by$ the entity$).$

Amy's marginal ordinary income tax rate $is35$ percent, and her income tax rate $on$ qualified dividends and net capital gains $is15$ percent.

Amy's marginal self$-$employment tax rate $is15\mathrm{.}3$ percent.

Amy pays $a\mathrm{.}9$ percent additional Medicare tax $on$ salary and net earnings from self$-$employment $(i.e.,$ her salary and net earnings from self$-$employment are over the threshold for the tax$).$

Amy pays $a3\mathrm{.}8$ percent net investment income tax $on$ dividends and net capital gains $(i.e.,$ AGI $on$ her joint tax return $is$ over the threshold $by$ more than any net investment income she receives$).$

Assume that for purposes $of$ the qualified business income deduction, the business income $is$ not from a specified service and neither the wage$-$based $limitation$ nor the taxable income $limitation$ applies $tolimit$ the deduction.

$If$ SHO $is$ formed $asanS$ corporation $oraC$ corporation, SHO will distribute all $of$ its earnings after paying entity level taxes and after deducting salary and related FICA taxes paid $to$ Amy.

$a.$ Fill $in$ the cells $in$ the table below $to$ identify cash flows associated with the income from the business $if$ the business $is$ formed $asanLLC(sole$ proprietorship$),S$ corporation, $orC$ corporation for tax purposes. Enter cash outflows $as$ negative numbers.