Kristen, the president and sole shareholder of Egret Corporation, has earned a salary bonus of $121,500 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 $ would receive s X after taxes. If Kristen receives a dividend rather than salary, she X after taxes. Thus, she would be better off by receiving the dividend V. Feedback Check My Work 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 be s Feedback Check My Work Incorrect Therefore, Egret would be better off by $ and the net after-tax cost for the dividend would be if it paid the c. Assume Egret Corporation paid Kristen a salary bonus of $157,950 instead of a $121,500 dividend. If Egret Corporation were to pay Kristen a salary bonus of $157,950 instead of a $121,500 dividend, Kristen would receive c. Assume Egret Corporation paid Kristen a salary bonus of $157,950 instead of a $121,500 dividend. If Egret Corporation were to pay Kristen a salary bonus of $157,950 instead of a $121,500 dividend, Kristen would receive after taxes. The bonus would cost Egret Corporation after taxes. Feedback Check My Work Incorrect d. What should Kristen do? Both Egret Corporation and Kristen are better off with the