Jeannette Gutierrez is the sole shareholder of Gutierrez Inc., a Canadian controlled private corporation. All of its income qualifies for the small business deduction and, in the province where its activities are located, the combined federal/provincial rate on such income is 12 percent.

Jeannettes income places her in the 33 percent federal tax bracket. Her marginal tax rate on additional income at the provincial level is 19 percent, resulting in a combined rate of 52 percent. The dividend tax credit in her province for non-eligible dividends is 29 percent of the dividend gross up.

During the taxation year ending December 31, 2019, Jeannette expects Gutierrez Inc. to have Net Income For Tax Purposes of $249,000. This is after a deduction of $232,000 that is paid to her as salary.

Jeannette needs an additional $25,000 in cash in order to pay for renovations to her principal residence. Gutierrez Inc. has sufficient cash to pay either additional salary or additional dividends in order to provide the required funds. The Company has no balance in its GRIP account.

Required: Determine the amount that would be required in the way of salary and in the way of dividends, in order to provide Jeannette with the required after tax funds of $25,000. Which alternative would have the lowest tax cost to Jeannette and her corporation?