Comparative Entities: Amber has a 20% ownership interest in an entity for which she initially contributed $250,000. She is one of the original owners of the business. During the life of the business the following have occurred: 1. Cumulative losses of $500,000 during the last three years (her share would be $100,000) 2. Profits of $240,000 in the current year (her share would be $48,000) 3. The entity borrowed $100,000 of recourse debt 4. Distributions to owners of $120,000 (her share would be $24,000) in the current year

Determine the tax consequences if the entity is a S Corporation: a. How much loss can she deduct over the three years? b How much income will be taxable to her in the current year? c What is the ending balance of her stockholder interest (show computations)?