Purple Company has $200,000 in net income for 2017 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and has no dependents. She claims the $6,350 standard deduction, and her personal exemption is $4,050 for 2017. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. Click here to access the corporate tax table and 2017 individual tax rate schedule to use for this problem.

When required, carryout intermediate tax computations to the nearest cent and then round your final tax liability to the nearest dollar.

a. If Purple Company is a proprietorship and Kirsten withdraws $50,000 from the business during the year, Kirsten 's taxable income is $189600, and her after-tax income is $_________.

b. Purple Company is a C corporation and the corporation pays out all of its after-tax income as a dividend to Kirsten. Purple Corporation's after-tax income is $138750 and Kristen's after tax income is $_________.