Question: can someone please help me with this explaining what i did wrong? Rover Corporation would like to transfer excess cash to its sole shareholder, Aleshla,

can someone please help me with this explaining what i did wrong? can someone please help me with this explaining what i did wrong?

Rover Corporation would like to transfer excess cash to its sole shareholder, Aleshla, who is also an employee, Aleshia is in the 24% tax bracket, and Rover is subject to a 21% rate. Becatse Aleshia's contribution to the business is substantial, Rover believes that a $118,800 bonus in the current year is reasonable compensation and should be deductible by the corpocation. However, Rover is considering paying Aleshia a $118,800 dividend because the tax rate on dividends is lower than the tax rate on compensation. Answer the following questions to determine whether Rover is correct in believing that a dividend is the better choice. a. Regarding taxes, which would benefit Aleshia the most? The $118,800 because after taxes she would have $ from the dividend and 1 from the bonus. b. Regarding taxes, which would benefit Rover Corporation the most? The $25,000 because it would save Rovers c. Considering the two parties together, which alternative would provide the most overall tax savings? The $118,800 because when the overall effect to both the corporation and the shareholder are considered the net tax saving is 5 x

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