Wren,Inc.is owned by Alfred (30%)and Mabel (70%).Alfred's marginal tax rate is 25% and Mabel's marginal tax rate is 33%.Wren's taxable income for 2008 is $400,000.
a.Determine the amount of the distribution that Wren would make to enable Alfred and Mabel to pay their tax liabilities associated with Wren's $400,000 taxable income if Wren is an S corporation.
b.If Wren is a C corporation.

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The Answer of Wren,Inc.is owned by Alfred (30%)and Mabel (70%).Alfred's marginal tax rate is 25% and Mabel's marginal tax rate is 33%.Wren's taxable income for 2008 is $400,000.
a.Determine the amount of the distribution that Wren would make to enable Alfred and Mabel to pay their tax liabilities associated with Wren's $400,000 taxable income if Wren is an S corporation.
b.If Wren is a C corporation.

Wren,IncIs Owned by Alfred (30%)and Mabel (70%)