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Kristen, the president and sole shareholder of Egret Corporation, has earned a salary bonus of $199,500 for the current year. Because of the lower tax

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Kristen, the president and sole shareholder of Egret Corporation, has earned a salary bonus of $199,500 for the current year. Because of the lower tax rates on qualifying dividends, Kristen is considering substituting a dividend for the bonus. Assume that the tax rates are 24% for Kristen and 21% for Egret Corporation. Round your answers to nearest dollar, if required. a. How much better off would Kristen be if she were paid a dividend rather than salary? If Kristen were paid a bonus, she would receive \$ after taxes. If Kristen recelves a dividend rather than salary, she would recelve? after taxes. Thus, she would be better off by receiving the b. How much better off would Egret Corporation be if it paid Kristen a salary rather than a dividend? The net after-tax cost of the bonus for Egret corporation would bes and the net after-tax cost for the dividend would bes . Therefore, Egret would be better off by 1 c. Assume Egret Corporation paid Kristen a salary bonus of $259,350 instead of a $199,500 dividend. If Egret Corperation were to pay Kristen a salary bonus of $259,350 instead of a $199,500 dividend, Kristen would receive 1 after taxes. The bonus would cost Egret Corporation s after taxes. d. What should Kristen do? Both Egret Corporation and Kristen are better off with the

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