dividend to its sole shareholder Chen, who is 25 years old and single Vegetable Corporation has taxable income of $50,000 in 2010. It distributes all its after-tax income is Chen has no income sources other than Vegetable Company. Based on these facts a. Chen will have taxable income of $35.400 b. Vegetable Corporation will have no Federal tax bitky. Chen will receive a dividend of 450,000 Od Vegetable Company will pay tax of $12,000 * Chen e ve a Federal tax liat of 59.540