Earl is an individual who holds significant property and earns approximately $400,000

in property income annually.

John is an individual who purchased the same types of properties as Earl but transferred all of the property to a corporation, JohnCorp, of which he owns 100%. John Corp earns approximately $400,000 in property income annually and distributes all the after-tax profits to John in the form of a dividend. Assuming the tax rate for each individual is the same and that perfect integration exists, with regard to the total income taxes that will be paid on each individual's source of income, ________.

Choose the correct answer.

A.it is impossible to determine whether the overall taxes for Earl will be greater or less than those of John

and John Corp combined with only this information

B.the overall taxes paid by Earl will be less than those paid by John and John Corp combined

C.the overall taxes paid by Earl will be the same as those paid by John and John Corp combined

D.the overall taxes paid by Earl will be more than those paid by John and John Corp combined