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Inez is the sole shareholder in TIP Technologies, Inc., a C corp. TIP Tech has a banner year and makes $ 1 million in profit.

Inez is the sole shareholder in TIP Technologies, Inc., a C corp. TIP Tech has a banner year and makes $1 million in profit. The company decides to reinvest most of it into the continued growth of the business, but it pays Inez a distribution of $100,000. How much in total taxes do Tip Tech and Inez owe the federal government? (Assume the corporate tax rate is 35% and the individual tax rate is 20%.)
$350,000
$550,000
$370,000
$200,000

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