14. Ms. Xie, who is in the 37 percent tax bracket, is the sole shareholder...
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14. Ms. Xie, who is in the 37 percent tax bracket, is the sole shareholder and president of Xenon. The corporation's financial records show the following: Gross income from sales of goods $1,590,000 Operating expenses (930,000) Salary paid to Ms. Xie (300,000) Dividend distributions (200,000) a. Compute the combined tax cost for Xenon and Ms. Xie. (Ignore payroll tax.) b. How would your computation change if Ms. Xie's salary was $500,000 and Xenon paid no dividends
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