22. Shaw is planning to start a new business venture and must decide whether to operate as a S Corporation or as a C Corporation. He projects that the business will generate annual taxable income of $150,000. He plans to draw $40,000 per year from the business for personal expenses. Shaw's personal marginal tax rate, given his other sources of income is 39.6%. a. Explain to Shaw the tax consequences of operating the business as an S Corporation 4 marks) b. Explain to Shaw the tax consequences of operating the business as a C corporation. Assume that the $40,000 will be distributed as a dividend to Steve. 4 marks) .Which form of ownership do you recommend considering only tax factor? (2 marks)