ou have set up your tax preparation firm as an incorporated business. You took $69,000 from the firm as your salary. The firm's taxable income for the year (net of your salary) was $30,200. Assume you pay personal taxes as an unmarried taxpayer. Use the tax rates presented in Table 3.5 and Table 3.7

. a. How much tax must be paid to the federal government, including both your personal taxes and the firms taxes? (Round your answer to 2 decimal places.)

b. By how much will you reduce the total tax bill if you cut your salary to $49,600, thereby leaving the firm with taxable income of $49,600? (Round your intermediate calculations and final answers to the nearest whole dollar amount.)

c. What allocation will minimize the total tax bill? Hint: Think about marginal tax rates and the ability to shift income from a higher marginal bracket to a lower one. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)