Purple Company has $200,000 in net income for 2020 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,400 standard deduction for 2020. 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 2020 individual tax rate schedule to use for this problem. Assume the corporate tax rate is 21%

b. Purple Company is a C corporation and the corporation pays out all of its after-tax income as a dividend to Kirsten.

Note: Individual taxpayers received preferential treatment regarding the taxation of qualified dividends (0%,15%,20%). For single taxpayers, the 0 percent rate applies to the first $40,000 of taxable income.

Purple Corporation's after-tax income is $158,000 and Kirsten's after tax income is $________

2020 Tax Rate Schedules Single-Schedule X Head of household-Schedule Z If taxable of the If taxable income is: But not amount income is: But not Over- over- The tax is: over Over over- The tax is: $ 0 $ 9,875 ... 10% $ 0 $ 0 $ 14,100 ... 10% 9,875 40,125 $ 987.50 +12% 9,875 14,100 53,700 $ 1,410.00+ 12% 40,125 85,525 4,617.50 + 22% 40,125 53,700 85,500 6,162.00 +22% 85,525 163,300 14,605.50 +24% 85,525 85,500 163,300 13,158.00 +24% 163,300 207,350 33,271.50 + 32% 163,300 163,300 207,350 31,830.00+ 32% 207,350 518,400 47,367.50 + 35% 207,350 207,350 518,400 45,926.00 + 35% 518,400 156,235.00+ 37% 518,400 518,400 154,793.50 +37% Married filing jointly or Qualifying widow(er)- Married filing separatelySchedule Y-2 Schedule Y-1 If taxable of the If taxable income is: But not amount income is: But nor Over- over The tax is: over- Over- over The tax is: $ 0 $ 19,750 ....... 10% $ 0 $ 0 $ 9,875 ... 10% 19.750 80,250 $ 1,975.00 + 12% 19,750 9,875 40,125 $ 987.50 +12% 80,250 171,050 9,235.00+ 22% 80,250 40,125 85,525 4,617.50 + 22% 171.050 326,600 29,211.00 + 24% 171,050 85 525 163,300 14,605.50 +24% 326,600 414,700 66,543.00 + 32% 326,600 163,300 207,350 33,271.50 + 32% 414,700 622,050 94,735.00 + 35% 414,700 207,350 311,025 47,367.50 + 35% 622,050 167,307.50 +37% 622,050 311,025 83,653.75 + 37% of the amount over $ 0 14,100 53,700 85,500 163,300 207,350 518,400 of the amount over $ 9,875 40,125 85,525 163,300 207,350 311,025