Mr$.$ Lion, who is in the $37$ percent tax bracket, is the sole shareholder of Toto Incorporated, which

manufactures greeting cards. Toto's average annual net profit $($before deduction of Mr$.$ Lion's salary$)$ is

$$310,000.$ For each of the following cases, compute the income tax burden on this profit. $($Ignore any

payroll tax consequences.$)$

Required:

a$.$ Mr$.$ Lion's salary is $$100,000,$ and Toto pays no dividends.

b$.$ Mr$.$ Lion's salary is $$100,000,$ and Toto distributes its after$-$tax income as dividend.

c$.$ Toto is an $S$ corporation. Mr$.$ Lion's salary is $$100,000,$ and Toto makes no cash distributions. Assume

Toto's ordinary income qualifies for the $20$ percent QBI deduction.

d$.$ Toto is an $S$ corporation. Mr$.$ Lion draws no salary, and Toto makes no cash distributions. Assume Toto's

ordinary income qualifies for the $20$ percent QBI deduction.

e$.$ Toto is an $S$ corporation. Mr$.$ Lion draws no salary, and Toto makes cash distributions of all its income to

Mr$.$ Lion. Assume Toto's ordinary income qualifies for the $20$ percent QBI deduction.