Oak Inc., a C corporation, reports taxable income of $100,000 before paying salary to its sole shareholder, Sue. Her marginal tax rate on ordinary income is 22 percent and 15 percent on dividend income. If Oak pays Sue a salary of $75,000 but the IRS determines that Sues salary in excess of $40,000 is unreasonable compensation, what is the amount of the overall tax (corporate level + shareholder level) on Oaks $100,000 pre-salary income (ignore the net investment income tax)? Assume Oaks tax rate is 21% and it distributes all after-tax earnings to Sue. Use the following chart to complete your answer.

With $40,000 SalaryDescription

1) Taxable income before salary (1) (2)

(2) Salary (3)

Taxable income (1) (2

4) Entity tax

(5) After-tax entity earnings

(6) Sues tax on dividends

(7) Sues tax on salary

(8) Overall tax(

9) Overall tax rate