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Exercise 1 9 - 2 6 ( Algorithmic ) ( LO . 4 , 1 0 ) Rover Corporation would like to transfer excess cash

Exercise 19-26(Algorithmic)(LO.4,10)
Rover Corporation would like to transfer excess cash to its sole shareholder, Aleshia, who is also an employee. Aleshia is in the 24% tax bracket, and Rover is subject to a 21% rate. Because Aleshia's contribution to the business is substantial, Rover believes that a $78,000 bonus in the current year is reasonable compensation and should be deductible by the corporation. However, Rover is considering paying Aleshia a $78,000 dividend because the tax rate on dividends is lower than the tax rate on compensation.
Answer the following questions to determine whether Rover is correct in believing that a dividend is the better choice.
a. Regarding taxes, which would benefit Aleshia the most?
The $78,000
dividend
because after taxes she would have $fill in the blank 2
66,300
from the dividend and $fill in the blank 3
59,280
from the bonus.
b. Regarding taxes, which would benefit Rover Corporation the most?
The $25,000
bonus
because it would save Rover $fill in the blank 5
5,250
in taxes.
c. Considering the two parties together, which alternative would provide the most overall tax savings?
The $78,000
bonus
because when the overall effect to both the corporation and the shareholder are considered the net tax savings is $fill in the blank 7
. I just need Part C.The answer is not 75,660,9,380,9,360 or 1,770! DO NOT give me that answer or I will dislike your solution!
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