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Jake would like to organize Jake's Garage as either a single-member L.C (taxed as a sole proprietorship) or a C corporation. In either form, the entity is on dividends and capital gains is 15 percent. Jake will also pay a 3.8 percent net investment income tax on dividends and capital gains he recognizes. If Jake organizes Jake's Garage as a single member LLC, Jake will be required to pay an additional 2.9 percent for seif-employment tax and an additional. 9 percent for the additional Medicare tax. Further, he is eligible to claim the deduction for qualifed busines5 incorne (Section 199A ). Assume that Jakes Garage will pay out its all its after-tax earnings every year as a dividend if it is focmed as a C corporation Please prepare a working paper (using Microsoft Excel) with 3 columns cornparing your calculations for the following: A. How much cash after takes would Jake receive from his imestment in the first vear if Jake's Garage is organized as either an LLC a C Corporation, or an S Corporation? C. What is the overall tax effect on both Jake and Jahes Garage if Jake decldes to organice Lake Girase in a C Corporation and the clectis Corporation status? D. Add a fourth column for an explanation of how you calculated the amounts for A - C above

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