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During the current year, Lemur Company had $220,000 net profit from operations. Carlos, hthe sole owner...

During the current year, Lemur Company had $220,000 net profit from operations. Carlos, hthe sole owner of Lemur, is in the 35% marginal tax bracket. Calculate the combined tax burden for Lrmur and Carlos under the following two independent situations. (Ignore any employment taxes and assume the company is Carlos’ sole source of income.)

a. Lemur Company is a C corporation and all of its after-tax income is distributed to Carlos.

b. Lemur Company is a proprietorship and all of its after-tax income is withdrawn by Carlos

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