ABC LLC was formed in 2017. Since 2018, ABC has incurred losses of 200,000 per year. The initial capital contributions of the three members of LLC were $250,000 each in cash (total $750,000). No other capital contributions have been made by the three shareholders. In 2021, ABC finally earns a profit of $100,000. Please answer the following questions:

1. Assuming that ABC is taxed as an s-corporation, what is each shareholders basis in ABC as of January 1, 2022?
2. Assuming that ABC is taxed as an c-corporation, what is each shareholders basis in ABC as of January 1, 2022?
3. Assuming that ABC is taxed as an s-corporation, what flow-through-losses, if any, could the shareholders take for 2018 to 2020?
4. Assuming that ABC is taxed as an c-corporation, and the $100,000 was earned ratably over the year, a distribution is made to all three shareholders on July 1. How is the distribution taxed and why?
5. With reference to question 4 above, following the distribution, what would the shareholders basis be in the company?