Marci and Jennifer each own 50% of the stock of Lavender, a C corporation. After paying each of them a "reasonable" salary of $125,000, the taxable income of Lavender usually is about $600,000 (at the 21% tax rate level). The corporation is about to purchase a $2,000,000 shopping mall ($1,500,000 allocated to the building and $500,000 allocated to the land). The mall will be rented to tenants at a net rent income (that is, includes rental commissions, depreciation, and so forth) of $500,000 annually. Marci and Jennifer will contribute $1,000,000 each to the corporation to provide the cash required for the acquisition.

Lavender's CPA has suggested that Marci and Jennifer purchase the shopping mall as individuals, lease it to Lavender for a fair rental of $300,000, and have Lavender rent the mall to the tenants. Both Marci and Jennifer are in the 32% tax bracket. The acquisition will occur on January 2, 2023.

Calculate the following amounts to determine whether the shopping mall should be acquired by Lavender, or by Marci and Jennifer, in accordance with their CPA's recommendation.

A. If Lavender acquires the shopping mall, what will be the corresponding tax liability related to the net rent income?

B. If Marci and Jennifer acquire the shopping mall and lease it to the corporation, their combined corresponding tax liabilities would be $_______. Lavender's corresponding tax liability under this scenario would be $_______.