Ruth, the president and sole shareholder of Lake Corporation, has earned a salary bonus of $$30,000$ for the current year. Because of lower rates on qualifying dividends $(15\%$ in her case$),$ Ruth is considering changing the form for the payment by making it a dividend rather than a bonus. Assume that the marginal tax rates are $24\%$ for Ruth and $21\%$ for Lake Corporation. Show your methods and calculations on each of the following:

How much better off would Lake Corporation be if it paid Ruth a salary rather than a dividend?

How much better off would Ruth be if she were paid a dividend rather than the bonus as compensation income?

What should Ruth do$?($and why$).$ Give me a short summary of how you would advise her to minimize the total taxes if you were her tax advisor.