Blue is the owner of all of the shares of an S corporation, and Blue is considering receiving a salary of $110,000 from the business. She will pay the 7.65% FICA taxes on the salary, and the S corporation will pay the same amount of FICA tax.

Blue reduces her salary to $50,000 and takes an additional $60,000 as a cash distribution.

Note the following: (1) Assume a corporate FICA rate of 15.3% and (2) If required, round your answer to the nearest dollar. (3) Assume that the IRS will not recharacterize the distribution as salary.

Compute and then enter the amount of FICA taxes saved as a result of Blue's action.

Blue and the corporation save $ _____in FICA taxes.