Clay Corporation has been an S corporation since its incorporation 10 years ago. During the first 3 years of operations, it incurred total losses of $250,000, Since then, Clay has generated earnings of approximately $180,000 each year. None of the earnings have been distributed to the three equal shareholders, Claire, Lynn, and Toms, because the corporation has been in an expansion mode. At the beginning of the current year, Claire sells her stock to Nell for $400,000. Nell has reservations about the utility of the 5 election. Therefore, Iynn, Tomais, and Nell are discussing whether the election should be continued. They expect the earnings to remain at approximstely $160,000 each year. However, because they perceive that the expansion period is over and Clay has adequate working capital, they may begin distributions of earnings to the sharcholders. All of the shareholders are in the 32% tax bracket and qualified dividends are taxed at 15%. II required round your final answers to the nearest dollar. a. Complete the statement belaw which outines an 5 corporation revocation. Uf the 5 elecaion is terminated, Clay Corporation cannot make another election for a five year period of time The revociation of the dection requires consent by shareholder(s). b. Autume the 5 election is maintained, The annual earnings of $180,000 are distributed to the shareholders which result in a total tax kabisty (associated with the distribution only) for all the shareholders is ? c. Conversely, asmume the 5 election is revolked. The corporate tax lubility is $ x. The total tax liability for all of the shareholders on the dividend distribution, assuming that the dividends are qualified dividends is d. The tatal tax liabley (for the corparation and shareholders) would be \$ X far a C corporation. X for an S corporation and 5. Assuming ali the earnings are 10 be distributed, the 5 election should be