X corporation, an S corporation, has $6,000,000 of domestic sales and $2,000,000 of foreign sales (export sales). Taxable income before any DISC commission is $600,000 from the domestic sales and $120,000 from the foreign sales.

a) What is the federal tax savings with or without a DISC? Assume that the individual income tax rate is 37% and the tax rates on dividends is 20%.

b) Assume the same facts except that the X corporation is a C corporation and does not use an IC-DISC. X has no depreciable assets or cash.