Facts: Acme Inc. is an S Corporation owned by ten equal shareholders. Acme's only asset is a social media software application which it had hoped to become the successor to Facebook. However, things have been going very slowly and Acme has been sustaining significant losses cach year. Acme has debts of $1,000,000. Unable to secure additional financing, Acme ceases regular business operations in 2017, hoping to sell its assets for what it believed was its value-S600,000. After two years of efforts, Acme is able to sell its assets for S800,000 in 2019 after which it pays its creditors.80 cents on each dollar owed. There is no money left for stockholders, nor is there any market for the stock going forward. Acme then ceases all operations, but does not formally dissolve Sam is a holder of 10% of Acme's stock, which he had purchased for $50,000 and received nothing as of the date it ceased operations. There is no market for the stock as of 2019 George holds a note from Acme for S10,000 for sales of office supplies to i in 2016 which George had previously reported as income under the accrual method. George is finally paid $8,000 of the notes face value in 2019 Alice held a note for $10,000 lent to Acme as an investment in 2015. Acme defaulted on the loan in 2016, and finally paid her only $8,000 of the notes face value in 2019 when it ceased doing business Question: What is the tax effect of these transactions on Sam, George, Alice and Acme What is the earliest time that any of the parties could take any deductions, or report any gains, related to these transaction, and in what form and character