Playa and Quinetta are equal shareholders in Corporation PQ$.$ Both shareholders have a $37$ percent marginal tax rate. PQ$$s financial records show the following:

Gross income from sales of goods $ $1,040,000$

Operating expenses $(430,000)$

Interest paid on debt to Playa and Quinetta $(82,000)$

Dividend distributions:

Playa $(70,000)$

Quinetta $(70,000)$

Required:

Compute the combined tax cost for PQ$,$ Playa, and Quinetta.

How would your computation change if the interest on the shareholder debt was $$222,000$ and PQ paid no dividends?