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

Essay

Wren, Inc. is owned by Alfred (30%) and Mabel (70%). Alfred's marginal tax rate is 25% and Mabel's marginal tax rate is 35%. Wren's taxable income for the current tax year is $300,000.
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 $300,000 taxable income if Wren is an S corporation.
b. If Wren is a C corporation.