I am unable to calculate shareholder's liability for option a or b. Please assist.

Plum Corporation will begin operations on January 1. Earnings for the next five years are projected to be relatively stable at about $80,500 per year. C corporations are taxed at 21%. The shareholders of Plum are in the 32% income tax bracket and dividends are taxable at 15%. Assume, if applicable, the qualified business deduction is available and not subject to any limitation or phaseout.

a. Assume that Plum will reinvest its after-tax earnings in the growth of the company.

If Plum operates as a C corporation, the corporation's income tax will be ($16,905) and the shareholders' liability will be ($0.00).

If Plum operates as an S corporation, the corporation's income tax will be ($0.00) and the shareholders' liability will be (_____)?

b. Assume that Plum will distribute its after-tax earnings each year to its shareholders.

If Plum operates as a C corporation, the corporation's income tax will be ($16,905) and the shareholders' liability will be ($9,539).

If Plum operates as an S corporation, the corporation's income tax will be ($0.00) and the shareholders' liability will be ($_____).