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Mr. Lion, who is in the 37 percent tax bracket is the sole shareholder of Toto Inc, which manufactures greeting cards. Toto's average annual net

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Mr. Lion, who is in the 37 percent tax bracket is the sole shareholder of Toto Inc, which manufactures greeting cards. Toto's average annual net profit (before deduction of Mr. Lion's salary is $370,000. For each of the following cases, compute the income tax burden on this profit. Assume that all dividends are taxed to individuals at a 20% tax rate. (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 a dividend c. Toto is an Scorporation Mr. Lion's salary is $100.000 and Toto makes no cash distributions. Assume Toto's ordinary income qualities for the 20 percent i deduction, subject to no limitations d. Toto is ons corporation Mr Llon draws no salary, and Toto makes no cash distributions Assume Toto's ordinary income qualifies for the 20 percent OBI deduction, subject to no limitations e. Toto is an s corporation Mr Lion draws no salary, and Toto makes cash distributions of all its income to Me Lion Assume Toto's ordinary income qualifies for the 20 percent Bi deduction subject to no limitations Amount home burden on this profit nome tax burden on this brot come tax burden on a pro constant DRO home burden on tot

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