What is the amount of the overall tax

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For the current year, Maple Corporation, a C corporation, reports taxable income of $200,000 before paying salary to its sole shareholder, Diane. Diane's marginal tax rate on ordinary income is 35 percent and 15 percent on dividend income. If Maple pays Diane a salary of $150,000 but the IRS determines that Diane's salary in excess of $80,000 is unreasonable compensation, what is the amount of the overall tax (corporate level + shareholder level) on Maple's $200,000 presalary income? Assume Maple's tax rate is 35 percent and it distributes all after-tax earnings to Diane.

Reference no: EM13126472

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