Kristen, the president and sole shareholder of Egret Corporation, has earned a salary bonus of $102,000 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.

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 _____ and the net after-tax cost for the dividend would be______

2 . Therefore, Egret would be better off by ___________ if it paid the BONUS