dividend to its sole shareholder Chen, who is 25 years old and single Vegetable Corporation has taxa

dividend to its sole shareholder Chen, who is 25 years old and single Vegetable Corporation has taxable income of $50,000 in 2010. It distributes all its after-tax income is Chen has no income sources other than Vegetable Company. Based on these facts a. Chen will have taxable income of $35.400 b. Vegetable Corporation will have no Federal tax bitky. Chen will receive a dividend of 450,000 Od Vegetable Company will pay tax of $12,000 * Chen e ve a Federal tax liat of 59.540