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/take Assignment/takeAssignmentMain.do?itvaker=&takeAssignmentSessionLocator=&inprogress=false Cengage Unlimited. CengageNOW Gwww.google.com eBook Exercise 5-17 (LO. 4, 8) Rover Corporation would like to transfer excess cash to its sole shareholder, Aleshia,

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/take Assignment/takeAssignmentMain.do?itvaker=&takeAssignmentSessionLocator=&inprogress=false Cengage Unlimited. CengageNOW Gwww.google.com eBook Exercise 5-17 (LO. 4, 8) Rover Corporation would like to transfer excess cash to its sole shareholder, Aleshia, who is also an employee. Aleshia is in the bracket, and Rover is subject to a 21% rate. Because Aleshia's contribution to the business is substantial, Rover believes that $25,000 bonus in the current year is reasonable compensation and should be deductible by the corporation. However, Rover is considering paying Aleshia a $25,000 dividend because the tax rate on dividends is lower than the tax rate on compensation. Answer the following questions to determine whether Rover is correct in believing that a dividend is the better choice. a. Regarding taxes, which would benefit Aleshia the most? The $25,000 dividend because after taxes she would have 25,000 from the dividend and GOODfr bonus

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