Question: In part B, what is Kristen's after-tax income? Please show calculations and reasoning.

Problem 15-21 (LO. 1) Purple Company records $200,000 in net income for 2019 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,200 standard deduction. 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 2019 individual tax rate schedule to use for this problem. Assume the corporate tax rate is 21%. When required, carryout intermediate tax computations to the nearest cent and then round your final tax liability to the nearest dollar. a. If Purple is a proprietorship. Kirsten withdraws $50,000 from the business during the year; she claims a $37,560 deduction for qualified business income. Kirsten's taxable income is $ 150,240 V, and her after-tax income is $ 169,768 V. Feedback Check My Work b. Purple is a C corporation and 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 O percent rate applies to the first $38,600 of taxable income. Purple Corporation's after-tax income is $ 158,000 and Kristen's after tax income is $ 129,631 x. 2019 Tax Rate Schedules Head of household-Schedule Z If taxable income is: But not Over- over- The tax is: $ 0 $ 13,850 .........10% 13,850 52,850 $ 1,385.00 + 12% 52,850 84,200 6,065.00 + 22% 84,200 160,700 12,962.00 + 24% 160,700 204,100 31,322.00 + 32% 204,100 510,300 45,210.00 + 35% 510,300 ......... 152,380.00 + 37% Married filing separatelySchedule Y-2 of the amount over- $ 0 13,850 52,850 84,200 160,700 204,100 510,300 Single Schedule X If taxable of the income is: But not amount Over- over- The tax is: over- $ 0 $ 9,700 ......... 10% $ 0 9,700 39,475 $ 970.00 + 12% 9,700 39,475 84,200 4,543.00 + 22% 39,475 84,200 160,725 14,382.50 + 24% 84,200 160,725 204,100 32,748.50 + 32% 160,725 204,100 510,300 46,628.50 + 35% 204,100 510,300 ......... 153,798.50 + 37% 510,300 Married filing jointly or Qualifying widow(er)- Schedule Y-1 If taxable of the income is: But not amount Over- over- The tax is: over- $ 0 $ 19,400 .........10% $ 0 19,400 78,950 $ 1,940.00 + 12% 19,400 78,950 168,400 9,086.00 + 22% 78,950 168,400 321,450 28,765.00 + 24% 168,400 321,450 408,200 65,497.00 + 32% 321,450 408,200 612,350 93,257.00 + 35% 408,200 612,350 164,709.50 + 37% 612,350 But not over- of the amount over- If taxable income is: Over- $ 0 9,700 39,475 84,200 160,725 204,100 306,175 $ 9,700 39,475 84,200 160,725 204,100 306,175 The tax is: .........10% $ 970.00 + 12% 4,543.00 + 22% 14,382.50 + 24% 32,748.50 + 32% 46,628.50 + 35% 82,354.75 + 37% $ 0 9,700 39,475 84,200 160,725 204,100 306,175 Problem 15-21 (LO. 1) Purple Company records $200,000 in net income for 2019 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,200 standard deduction. 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 2019 individual tax rate schedule to use for this problem. Assume the corporate tax rate is 21%. When required, carryout intermediate tax computations to the nearest cent and then round your final tax liability to the nearest dollar. a. If Purple is a proprietorship. Kirsten withdraws $50,000 from the business during the year; she claims a $37,560 deduction for qualified business income. Kirsten's taxable income is $ 150,240 V, and her after-tax income is $ 169,768 V. Feedback Check My Work b. Purple is a C corporation and 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 O percent rate applies to the first $38,600 of taxable income. Purple Corporation's after-tax income is $ 158,000 and Kristen's after tax income is $ 129,631 x. 2019 Tax Rate Schedules Head of household-Schedule Z If taxable income is: But not Over- over- The tax is: $ 0 $ 13,850 .........10% 13,850 52,850 $ 1,385.00 + 12% 52,850 84,200 6,065.00 + 22% 84,200 160,700 12,962.00 + 24% 160,700 204,100 31,322.00 + 32% 204,100 510,300 45,210.00 + 35% 510,300 ......... 152,380.00 + 37% Married filing separatelySchedule Y-2 of the amount over- $ 0 13,850 52,850 84,200 160,700 204,100 510,300 Single Schedule X If taxable of the income is: But not amount Over- over- The tax is: over- $ 0 $ 9,700 ......... 10% $ 0 9,700 39,475 $ 970.00 + 12% 9,700 39,475 84,200 4,543.00 + 22% 39,475 84,200 160,725 14,382.50 + 24% 84,200 160,725 204,100 32,748.50 + 32% 160,725 204,100 510,300 46,628.50 + 35% 204,100 510,300 ......... 153,798.50 + 37% 510,300 Married filing jointly or Qualifying widow(er)- Schedule Y-1 If taxable of the income is: But not amount Over- over- The tax is: over- $ 0 $ 19,400 .........10% $ 0 19,400 78,950 $ 1,940.00 + 12% 19,400 78,950 168,400 9,086.00 + 22% 78,950 168,400 321,450 28,765.00 + 24% 168,400 321,450 408,200 65,497.00 + 32% 321,450 408,200 612,350 93,257.00 + 35% 408,200 612,350 164,709.50 + 37% 612,350 But not over- of the amount over- If taxable income is: Over- $ 0 9,700 39,475 84,200 160,725 204,100 306,175 $ 9,700 39,475 84,200 160,725 204,100 306,175 The tax is: .........10% $ 970.00 + 12% 4,543.00 + 22% 14,382.50 + 24% 32,748.50 + 32% 46,628.50 + 35% 82,354.75 + 37% $ 0 9,700 39,475 84,200 160,725 204,100 306,175