nutt corporation projects that it will have taxable income for the year of 400000 before incurring any interest ex/

a. What is the amount of the overall tax (corporate level + shareholder level) on the $400,000 of pre-interest expense earnings if Hazel, Nutt’s sole shareholder, lends Nutt Corporation $30,000 at the beginning of the year, Nutt pays Hazel $8,000 of interest on the loan (interest is considered to be reasonable), and Nutt distributes all of its after-tax earnings to Hazel (ignore the net investment income tax)? Assume her ordinary marginal rate is 35 percent and dividend tax rate is 15 percent.