Leona, whose marginal tax rate on ordinary income is 39.6 percent, owns 100 percent of the stock of Henley Corporation. This year, Henley generates...

Leona, whose marginal tax rate on ordinary income is 39.6 percent, owns 100 percent of the stock of Henley Corporation. This year, Henley generates $1 million of taxable income. Use Appendix C and Corporate tax rate schedule.

1. If Henley wants to pay all of its after-tax earnings to Leona as a dividend, calculate the amount of the dividend payment.
2. Calculate Leona's tax due on the dividend computed in part a, and her after-tax cashflow from the dividend receipt.
3. Compute the combine corporate and individual tax burden on Henley's $1 million of current year income, and the effective combined tax rate on this income.