Boots, Inc. is a "C" corporation engaged in the shoe manufacturing PROBLEM business Boots is a calendar year, accrual method taxpayer with two equal shareholders, Emil and Betty, who are unrelated cash method taxpayers. answering the questions below, assume for convenience that Emil and Bey each are taxable at a combined federal and state flat rate of 40% on income and a combined (int rate of 20% on qualified dividends and long-ters capital gains. During the current year, Boots has the following income and expense items: ordinary Income: Gross profit-sale 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? (c) What result in (a), above, if instead of paying dividends Boots pays Emil and Betty salaries of $500,000 each? Has the effectiveness of this traditional strategy to reduce the impact of the double tax on corporate earnings changed as a result of the 2017 Act? (d) Consider generally whether there is any advantage to operating Boots as a pass-through entity, such as a partnership, limited liability company, or corporation and, if so, whether Emil and Betty will qualify for the new 20% deduction for qualified business income. What additional facts are necessary to evaluate this option