Ken Tremont and Troy began a new consulting business on January 1,2019. They organized the business as a C corporation, KT, Inc. During 2019, the corporation was successful and generated revenues of $1,500,000 . KT had operating expenses of $725,000 before any payments to Ken & Troy. During 2019 , KT paid dividends to Ken & Troy and in the amount of $330,000 each. Assume that 's Troy earned $130,000 from her job , they file a joint return, have itemized deductions of $36,000, and have no children. (Assume the qualified dividends tax rate is 15%.)

Requirement a. Compute the total tax liability of KT, INC and Ken and Troy for 2019

Requirement b. Instead of organizing the consulting business as a C corporation, assume Ken and Troy organized the business as a limited liability company, KT, LLC. KT made a distribution of $330,000 each to Ken and Troy during 2019. Compute the total tax liability of KT,INC and Ken & Troy for 2019. Ignore any and additional tax on net investment income