Moana is a single taxpayer who operates a sole proprietorship. She expects her taxable income next year to be $250,000, of which $200,000 is attributed to her sole proprietorship. Moana is contemplating incorporating her sole proprietorship. (Use the tax rate schedule.)

Over 209,425 Under 523,600= 47,843 plus 35% of the excess over 209,425

a. Using the single individual tax brackets and the corporate tax rate (21%), find out how much current tax this strategy could save Moana (ignore any Social Security, Medicare, or self-employment tax issues). (Do not round your intermediate calculations. Round your final answer to two decimal places.)

b. How much income should be left in the corporation?