Boots, Inc. is a C corporation engaged in the shoe manufacturing business. Boots is a calendar year, accrual method taxpayer with two equal shareholders, Emil and Betty, who are unrelated cash method taxpayers. In answering the questions below, assume for convenience that Emil and Betty each are taxable at a combined federal and state flat rate of 40% on ordinary income and a combined flat rate of 20% on qualified dividends and long-term capital gains. During the current year, Boots has the following income and expense items: Income: Gross profitsale of inventory $2,600,000 Capital gains $ 200,000 Expenses and Losses: Operating Expenses $ 800,000 Equipment purchase (100% expensed) under 168(k) $ 800,000 Capital losses $ 220,000 (a)Determine Boots, Inc.s taxable income and its tax liability for the current year. (b)What result in (a), above, if Boots distributes its after-tax profits to Emil and Betty as qualified dividends?