Yellow company had $100,000 net profit from operation in 2010 and paid its sole shareholder a dividend of $77,750 ( $100,000 net profit - $22,250 corporate tax). Assume shareholder is in the 35% marginal tax bracket. Would shareholder's tax situation be better or worse if Yellow company was a proprietorship and shareholder withdrew $77,750 from the business during the year? Explain by showing calculations for the total taxes paid if Yellow was a sole proprietorship vs. the total taxes Yellow Corp. and shareholder if Yellow was a C corp. as described above. Show computations. If sole proprietorship | If C corp. and shareholder