Accounting question

Jordan transfers $350.000 in cash to newly formed Murphy Corporation for 100% of Murphy's stock. In the first year of operations. Murphy's taxable income before any payments to Jordan is $140,000. Read the reguirements. Requirements What total amount of taxable income must Jordan and Murphy each report in the following two scenarios? a. Murphy pays a $25,000 dividend to Jordan b. Assume that when Murphy was formed Jordan transferred his $350,000 to the corporation for $125,000 of Murphy stock and $225000 in Murphy notes The notes are repayable in eight annual installments of $28.125 plus 2% annual interest on the unpald balance. During the current year Murphy gives Jordan $28.125 in repayment of the first note plus $4.500 interest