Orie and Jane, husband and wife, operate a sole proprietorship. They expect their taxable income next year to be $450,000, of which $250,000 is attributed to the sole proprietorship. Orie and Jane are contemplating incorporating their sole proprietorship. (Use the 2022 tax rate schedule.)

Required:

a. Using the married-joint tax brackets and the corporate tax rate, find out how much current tax this strategy could save Orie and Jane. Note: Do not round your intermediate calculations. Round your final answer to the nearest whole dollar amount.

b. How much income should be left in the corporation?