Assume Sophia and Shahan each own $50\%$ of a pastry shop. The pastry shop earns $$300,000$

in taxable income this year and distributes $$50,000$ of profit to each owner. Assume Shahan is

married and has $$100,000$ of other taxable income, and Sophia is single and has no other

taxable income.

If the pastry shop is a regular C Corporation, what are the tax consequences?

$$ Entity level tax on $$300,000$ at $21\%$ corporate rate.

$$ Owner$-$level tax on $$50,000$ distribution at preferential rate $(15\%)$