Lavender Corporation has taxable income of $100,000 in 2019. It pays corporate tax of $21,000. This leaves $79,000, all of which is distributed as a dividend to Ashley, a 43-year-old single individual and the corporation's sole shareholder. Ashley has no income sources other than Lavender Corporation.

Ashley has taxable income of $66,800 ($79,000 $12,200 standard deduction). She pays tax at the preferential rate applicable to qualified dividends received by individuals. Her tax is $4,111 [($39,375 0%) + ($100 12%) + ($27,325 15%)]. Why 12%, why 100 dollars? Also, please compute the corporation's net profit.