Problem: Module 9 Textbook Problem 8 Learning Objectives: - 9-4 Explain tax and nontax considerations in choosing a passthrough entity form - 9.6 Explain why indlviduals once again can use corporations as tax shelters Mr, Lion, who is in the 37 percent tax bracket, is the sole shareholder of Toto inc, which manufactures greeting cards. Toto's average annual net profit (before deduction of Mr. Lion's salary) is $380,000. For each of the following cases, compute the income tax burden on this profit. Assume that all dividends are taxed to Indlviduals at a 20% tax rate. (fignore any payroll tax consequences) Required: a. Toto is a C Corporation subject to a 21% tax rate, Mr. Lion's 5alary is $100,000, and Toto pays no dividends. b. Toto is o C Corporation subject to a 21% tax rate. Mr. Lion's saiary is $100,000, and Toto distributes its after-tax income as a dividend. c. Toto is an S corporation. Mr. Lion's salary is $100,000, and Toto makes no cash distributions. Assume Toto's ordinary income qualifies for the 20 percent OBI deduction, subject to no limitotions. d. Toto is an 5 corporation. Me. Lion draws no salary, and Toto makes no cash distributions. Assume Toto's ordinary income quatifles for the 20 percent OBi deduction, subject to no limitations. e. Toto is an S corporation. Mr. Lion draws no salary, and Toto makes cosh distributions of all its income to Mr. Lion. Assume Toto's ordinary income qualifies for the 20 percent QBI deduction, subject to no limitations