A regular corporation (C Corporations) has taxable income of $1,000 and pays $500 in total dividends from the corporation’s retained earnings to its shareholders during the year. Assume a preferential individual dividend rate of 15%, an individual ordinary income rate of 28%, and a corporate tax rate of 34%. What is the total income tax liability for the corporation and its shareholders for the year?
a. $340
b. $355
c. $415
d. $480