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:

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 $$502,000$ 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.$)$