Galadriel Corporation reports pre-tax earnings of $500,000 during the current year. The corporation wishes to distribute $100,000 to Gabby, its sole owner and CEO, in a manner that will minimize taxes for Galadriel and Gabby. The corporation is subject to the regular corporate tax rates. Gabby’s tax rate is a flat 39.6%. Ignoring FICA employment taxes paid by the corporation and Gabby, compare the after-tax income reported if the $100,000 is paid to Gabby as (1) salary and (2) as a qualifying dividend.