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Mt. Lien, 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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Mt. Lien, who is in the 37 percent tax bracket. is the sole shareholder of Toto inc., which manufactures greeting cards. Toto's average annual net protit tbefore deduction of Mr. tion's salary) is $390.000. 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: 8. Toto is a Cocporation subject to a 211 tax rate. Mr. Lon's salary is $100,000, and Toto poys no dividends. b. Toto is a C Corpotation subject to a 21v tax rote Mr. Lion's salary is $100.000, and Toto distributes its after-tax income as a dividend. c. Tono is an 5 corporetion. Mr. Lion's salary is $100,000, and Toto mokes no cash distributions. Assume Toto's ordinary income Quatifes for the 20 percent QBi deduction, subject to no limitations d. Toto is an 5 corporation. Mr. Lion draws no salary. and Yoto makes no cosn distributions. Assume Toto's ordinary income quabifies for the 20 percemt cesi deduction, subject to no lamitiotions. 6. Tote is sn S corporesion. Mr. Uon draws no soiory. and Toto makes cosh distrisutions of all its income to Mr. Lion. Assume Toto's ordinaly income cusiffes for the 20 percent QBi decuction, subject to no limitations

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