question archive You are asked to value an S corporation that had a before-tax income of $100,000, with a tax rate of 40 percent
Subject:AccountingPrice: Bought3
You are asked to value an S corporation that had a before-tax income of $100,000, with a tax rate of 40 percent. Calculate the value using the IRS's approach and the non-IRS approach and assume a capitalization rate of 20 percent. What is the premium for the pass-through entity?