The Bling Corporation, a C corporation, is owned 100% by Dave Talbot and had taxable income in 2019 of $515,000. Dave is also an employee of the corporation. In December 2019, the corporation has decided to distribute $430,000 to Dave and has asked you whether it would be better to distribute the money as a dividend or salary. Dave, a single taxpayer, is in the 37% marginal tax bracket. How would you respond to Bling Corporation? Consider only income taxes for this problem. (Dave's taxable income exceeds $434,550.) i (Click the icon to view the tax rates for 2019.) Calculate the taxes for Bling and Dave under each option. (For the purpose of this analysis, we will only consider the marginal and capital gain rates for Dave. Ignore additional taxes imposed on high income taxpayers.) Distributed as dividend Distributed as salary Taxes for Bling Taxes for Dave Total tax liability The $430,000 would result in smaller taxes. The tax savings would be even if Dave were in a tax bracket. dividend salary