Charleston Corporation (CC) now operates as a "regular" corporation, but it is considering a switch to S Corporation status. CC is owned by five stockholders who each hold 20% of the stock, and each faces a personal tax rate of 38%. The firm earns $2,000,000 per year before taxes, and since it has no need for retained earnings, it pays out all of its earnings as dividends. Assume that the corporate tax rate is 35% and the personal tax rate is 38%. How much more (or less) spendable income would each stockholder have if the firm elected S Corporation status? 1) $85,064 2) $86,800 3) $88,536 4) $90,307 5) $92 113