Exercise 19-23 (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 $140,400 bonus in the current year is reasonable compensation and should be deductible by the corporation. However, Rover is considering paying Aleshia a $140,400 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 $140,400 dividend bonus. because after taxes she would have $ b. Regarding taxes, which would benefit Rover Corporation the most? The $140,400 bonus because it would save Rover $ in taxes. from the dividend and t from the c. Considering the two parties together, which alternative would provide the most overall tax savings? The $140,400 bonus savings is s because when the overall effect to both the corporation and the shareholder are considered the net tax Feedback Check My Work Closely held corporations have considerable discretion regarding their dividend policies. In the past, the double tax result provided strong motivation to avoid the payment of dividends.