Problem: Module 8 Textbook Problem 9 Learning Objective: 8-7 Explain why corporate profits distributed as dividends are double-taxed Leona, whose marginal tax rate on ordinary income is 37 percent and special rate on qualified dividends is 20 percent, owns 100 percent of the stock of Henley Corporation. This year, Henley generates $1 million of taxable income. Henley is subject to a 21% corporate tax rate. Required: a. If Henley wants to pay all of its after-tax earnings to Leona as a dividend, calculate the amount of the dividend payment. b. Calculate Leona's tax due on the dividend computed in part a, and her after-tax cash flow from the dividend receipt. c. Compute the combined corporate and individual tax burden on Henley's $1 million of current year income, and the effective combined tax rate on this income. Complete this question by entering your answers in the tabs below. If Henley wants to pay all of its after-tax earnings to Leona as a dividend, calculate the amount of the dividend payment. (Enter your answer in dollars and not in millions of dollars.) Calculate Leona's tax due on the dividend computed in part a, and her after-tax cash flow from the dividend receipt. (Enter your answers in dollars and not in millions of dollars.) Compute the combined corporate and individual tax burden on Henley's $1 million of current year income, and the effective combined tax rate on this income. (Round your answer for the effective combined tax rate to one decimal place. Enter your answer in dollars and not in millions of dollars.)