ook 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 $ 1,590,000 (930,000) (300,000) (200,000) 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 $500,000 and Xenon paid no dividends? Complete this question by entering your answers in the tabs below.

Ms. Xie, who is in the 37 percent tax bracket, is the sole sharehoider 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 $500,000 and Xenon paid no dividends? Complete this question by entering your answers in the tabs below