Prentice Hall's Federal Taxation 2016 Individuals, Problem Chapter I:1-19 The Bruin Corporation, a C corporation, is owned 100% by John Bean and had taxable income in 2015 of $500,000. John is also an employee of the corporation. In December 2015, the corporation has decided to distribute $400,000 to John and has asked you whether it would be better to distribute the money as a dividend or salary. John is in the 39.6% marginal tax bracket. How would you respond to Bruin Corporation? Consider only income taxes for this problem.

Please help me understand how to solve the problem.