Erie Corporation reported taxable income of $2,200,000 in 20X3 before any deduction for any payment to its sole shareholder and employee,LaBron Cleveland.Erie paid a bonus of $200,000 to LaBron at year-end.Erie Corporation is subject to a flat-rate tax of 34%.The bonus meets the requirements to be "reasonable" and is therefore deductible by Erie.LaBron is subject to a marginal tax rate of 35% on the bonus.What is the total federal income tax imposed on the corporate income earned by Erie and paid to LaBron as a bonus?

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The Answer of Erie Corporation reported taxable income of $2,200,000 in 20X3 before any deduction for any payment to its sole shareholder and employee,LaBron Cleveland.Erie paid a bonus of $200,000 to LaBron at year-end.Erie Corporation is subject to a flat-rate tax of 34%.The bonus meets the requirements to be "reasonable" and is therefore deductible by Erie.LaBron is subject to a marginal tax rate of 35% on the bonus.What is the total federal income tax imposed on the corporate income earned by Erie and paid to LaBron as a bonus?

Erie Corporation Reported Taxable Income of $2,200,000 in 20X3 Before