Charleston Corporation (CC) now operates as a regularcorporation, but it is considering a switch to S Corporation status. CCis owned by 100 stockholders who each hold 1% of the stock, andeach faces a personal tax rate of 35%. The firm earns $2,000,000 per year before taxes, and since it has noneed for retained earnings, it pays out all of its earnings asdividends. Assume that the corporate tax rate is 34% and the personal tax rateis 35%. How much more (or less) sp

endable income would each stockholder have if the firm elected S Corporation status?