In the current year, Azure Company has $350,000 of taxable income income before deducting any compensation or other payment to its sole owner, Sasha. Azure also has interest on municipal bonds of $25,000 not included above. Sasha has significant income from other sources and is in the 37% marginal tax bracket and is otherwise in the 20% long-term gain tax bracket. Based on this information, determine the income tax consequences to Azure Company and to Sasha during the year for each of the following independent situations. (Ignore the deduction for qualified business income and the 3.8% Medicare surtax on net investment income.)

1. Azure is a C corporation and pays no dividends or salary to Sasha. Azure and Sasha .

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

3. Azure is a C corporation and pays $75,000 of salary to Sasha. Azure and Sasha .

4. Azure is a sole proprietorship, and Sasha withdraws $0. Azure and Sasha .

5. Azure is a sole proprietorship, and Sasha withdraws $75,000. Azure and Sasha .