Benton Company (BC), a calendar year entity, has one owner, who is in the 37% Federal income tax bracket (any net capital gains or dividends would be taxed at a 20% rate). BCs gross income is $395,000, and its ordinary trade or business deductions are $245,000.

Compute the Federal income tax liability on BCs income for the current year under the following assumptions. Ignore the standard deduction (or itemized deductions) and the deduction for qualified business income.

a. BC is operated as a proprietorship, and the owner withdraws $100,000 for personal use.

b. BC is operated as a corporation, pays out $100,000 as salary, and pays no dividends to its shareholder.

c. BC is operated as a corporation and pays out no salary or dividends to its shareholder

d. BC is operated as a corporation, pays out $100,000 as salary, and pays out the remainder of its earnings as dividends.