Ms$.$ Xie, who is in the $37$ percent tax bracket, is the sole shareholder and president of Xenon. The corporation's financial records show the following:

Gross income from sales of goods

Operating expenses

Salary paid to Ms$.$ Xie

Dividend distributions

$$1,647,000$

$(949,000)$

$(319,000)$

$(219,000)$

Required:

a$.$ Compute the combined tax cost for Xenon and Ms$.$ Xie. $($Ignore payroll tax.$)$

b$.$ How would your computation change if Ms$.$ Xie's salary was $$538,000$ and Xenon paid no dividends?

Complete this question by entering your answers in the tabs below.

Compute the combined tax cost for Xenon and Ms$.$ Xie. $($Ignore payroll tax.$)$

$\backslash$table$[[,$Amount$],[$Xenon$\text{'}$s tax,$],[$Ms$.$ Xie's tax on salary,$],[$Ms$.$ Xie's tax on dividend,$],[$Total income tax cost,$