$(7$ points$)$ You are considering starting up your own company. You are trying to determine whether

to start it as an S Corporation or a C Corporation. In the first year, you expect the company to

generate taxable income of $$250,000.$ If you set it up as a C Corporation, the company will pay you

$$100,000$ dividends during the year.

Currently, the corporate income tax rate is a flat $21\%$ on taxable corporate income. The tax rate on

qualified dividends is $20\%($the dividends you will receive are qualified$).$ The tax rates on personal

income $($single filer$)$ are provided below.

Determine the dollar amount of tax payments:

a$)$ if the firm is an S Corporation, and

b$)$ If the firm is a C corporation.

a$)$ Tax if the firm is an S Corporation

b$)$ Tax if the firm is a C Corporation