2. Deb is the sole shareholder of Timeless Corporation, acalendar year C corporation. In the current year, Trash earnedtaxable income of $250,000 and distributed $175,000 to Deb. Kyle isthe sole shareholder of Swanky Corporation, an S corporation. Inthe current year, Swanky earned taxable income of $250,000 anddistributed $175,000 to Kyle. Assume both Kyle and Deb arein the highest regular tax bracket (use 37%). Contrast the taxtreatment of Timeless Corporation and Deb with the tax treatment ofSwanky Corporation and Kyle.
