Ruth, the president and sole shareholder of Lake Corporation, has earned a salary bonus of $30,000 for the current year. Because of lower rates on qualifying dividends (15% in her case)Ruth is considering changing the form for the payment by making it a dividend rather than a bonusAssume that the marginal tax rates are 24% for Ruth and 21% for Lake Corporation. Show your methods and calculations on each of the following: 1. How much better off would Lake Corporation be if it paid Ruth a salary rather than a dividend ? 2. How much better off would Ruth be if she were paid a dividend rather than the bonus as compensation income? 3. What should Ruth do? ( and why). Give me a short summary of how you would advise her to minimize the total taxes if you were her tax advisor

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1 To calculate how much better off Lake Corporation would be if it paid Ruth a salary rather than a ... View the full answer