In the current year, Azure Company has $350,000 of net operating income before deducting any compensation or other payment to its sole owner, Sasha. In addition, Azure has interest on municipal bonds of $25,000. Sasha has significant income from other sources and is in the 37% marginal tax bracket. What is the combined corporate and individual income tax liability to Azure Company and to Sasha? (Ignore the deduction for qualified business income and the 3.8% Medicare surtax on net investment income.)

A) Azure is a C corporation and distributes $75,000 of dividends to Sasha.

B) Azure is a C corporation and pays $75,000 of salary to Sasha