The correct answer is $17,512.50 ... Please explain how to solve.

6. You are trying to decide whether to run your business as a taxable ("C") corporation or as an individual owner (for example, as a "sole proprietorship). One of the factors to consider is the problem of double taxation. Assume that the corporate income tax rate is 21%. You have substantial income from other sources. This puts you into the highest personal income tax bracket. Thus, your personal income tax rate for the income on the business (if run as a sole proprietorship) is 37% and your personal income tax rate for dividend income from the corporation is 23.8%. (Use these tax rates. As in class, ignore other taxes and ignore the "qualified business income deduction.) How much more after-tax cash flow will you have if you run the business as a sole proprietorship rather than as a taxable C corporation? Hint: fill out the following table to help answer the question. a Problem continues on the next page Operated as taxable (C) corporation Operated as a sole proprietorship Corporation Cash Revenue Cash Expenses Taxable income Corporate Income Tax (21%) Net Income* $825,000.00 -$200,000.00 $625,000.00 Individual Cash Revenue Cash Expenses Taxable income Individual Income Tax (37%) After-tax net cash flow $825,000 $200,000 $625,000 Individual (stockholder) Dividend Income (*equal to Net Income) Individual Income Tax (23.8%) After-tax net cash flow