CHAZ HAS A $($return of captial OR taxable dividend$)$ complete the rest of the chart as well

On January 2, Chaz transfers cash of $67,800 to a newly formed corporation for 100% of the stock. In its initial year, the corporation has net income of $16,950. The income is credited to its earnings and profits account. The corporation distributes $5,085 to Chaz. If an amount is zero, enter "O". a. How do Chaz and the corporation treat the $5,085 distribution? Chaz has a of and the corporation has a deduction of b. Assume instead that Chaz transfers to the corporation cash of $33,900 for stock and cash of $33,900 for a note of the same amount. The note is payable in equal annual installments of $3,390 and bears interest at the rate of 6%. No distributions are made during the year to Chaz. However, at the end of the year, the corporation pays an amount to meet the loan obligation(i.e., the annual $3,390 principal payment plus the interest due). Determine the total amount of the payment and its tax treatment to Chaz and the corporation. The corporate payment to Chaz totals Chaz has interest of and a note repayment of of which is taxable to Chaz. The corporation has a deduction of