A business generates profits of $150,000. The owner currently has a 32% marginal tax rate. What is the total amount of taxes paid if the business is a regular corporation and $20,000 in dividends is distributed to its sold individual shareholder?

Multiple Choice

Corporate tax, $31,500; individual tax, $3,000

Corporate tax, $48,000; individual tax, $6,400

Corporate tax, $31,500; individual tax, $6,400

Corporate tax, $0; Individual tax, $48,000