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Rover Corporation would like to transfer excess cash to its sole shareholder,...

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Accounting

Rover Corporation would like to transfer excess cash to its sole shareholder, Aleshia, who is also an employee. Aleshia is in the 24% tax
bracket, and Rover is subject to a 21% rate. Because Aleshia's contribution to the business is substantial, Rover believes that a $75,600
bonus in the current year is reasonable compensation and should be deductible by the corporation. However, Rover is considering paying
Aleshia a $75,600 dividend because the tax rate on dividends is lower than the tax rate on compensation.
c. Considering the two parties together, which alternative would provide the most overall tax savings?
The $75,600 bonus because when the overall effect to both the corporation and the shareholder are considered the net tax savings is ____.
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