Dan is the sole shareholder of Tristar Corporation, a C corporation. In the current year, Tristar earned $350,000 and distributed $75,000 to Dan. Ken is the sole shareholder of Shield Corporation, an S corporation. In the current year, Shield earned $350,000 and distributed $75,000 to Ken. Contrast the tax treatment of Tristar Corporation and Dan with the tax treatment of Shield Corporation and Ken.

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The tax treatment for Tristar Corporation and Dan as a C corporation and i... View the full answer