Dawn Is the Sole Shareholder of Thrush Corporation, a C

Essay

Dawn is the sole shareholder of Thrush Corporation, a C corporation. In the current year, Thrush earned $350,000
and distributed $75,000 to Dawn. Kirk is the sole shareholder of Swallow Corporation, an S corporation. In the current year, Swallow earned $350,000 and distributed $75,000 to Kirk. Contrast the tax treatment of Thrush Corporation and Dawn with the tax treatment of Swallow Corporation and Kirk.