hmic) (LO. 4, 8) Kristen, the president and sole shareholder of Egret Corporation, has earned a salary bonus of $89,000 for the current year. Because of the lower tax rates on qualifying dividends, Kristen is considering substituting a dividend for the bonus. Assume that the tax rates are 24% for Kristen and 21% for Egret Corporation. Round your answers to nearest dollar, if required. a. How much better off would Kristen be if she were paid a dividend rather than salary? If Kristen were paid a bonus, she would receive $ 67,640 after taxes. If Kristen receives a dividend rather than salary, she would receive $ 75,650 after taxes. Thus, she would be better off by receiving the dividend Feedback b. How much better off would Egret Corporation be if it paid Kristen a salary rather than a dividend? The net after-tax cost of the bonus for Egret Corporation would be $ 70,310 and the net after-tax cost for the dividend would be s 89,000 . Therefore, Egret would be better off by $ 18,690 if it paid the bonus v Feedback C. Assume Egret Corporation paid Kristen a salary bonus of $115,700 instead of a $89,000 dividend. If Egret Corporation were to pay Kristen a salary bonus of $115,700 instead of a $89.000 dividend, Kristen would receive 24,297 x after taxes. The bonus would cost Egret Corporation $ 91,403 after taxes. b. How much better off would Egret Corporation be if it paid Kristen a salary rather than a dividend? The net after-tax cost of the bonus for Egret Corporation would be $ 70,310 and the net after-tax cost for the dividend would be $ 89,000. Therefore, Egret would be better off by $ 18,690 if it paid the bonus Feedback C. Assume Egret Corporation paid Kristen a salary bonus of $115,700 instead of a $89,000 dividend. If Egret Corporation were to pay Kristen a salary bonus of $115,700 instead of a $89,000 dividend, Kristen would receive 24,297 x after taxes. The bonus would cost Egret Corporation $ 91,403 V after taxes. Feedback d. What should Kristen do? Both Egret Corporation and Kristen are better off with the $115,700 bonus V Feedback Feedback