I need help with part b-1

Problem 13-48 (LO.S) An entity reports the following income for the current year. Operations Tax-exempt interest income $92,000 19,000 60,000 Long-term capital gain The entity holds earnings and profits (AAA for an Scorporation) of $900,000 at the beginning of the year. A distribution of $200,000 is made to the owners. a. Determine the income for each entity type below: (1) If the entity is a C corporation then the taxable income is s 152,000 . (2) If the entity is an S-corporation then the ordinary income of the corporation is $ 92,000 . Feedback Check My Work b. Determine the effect of the distribution on the shareholders for the entity. Assume shareholder have sufficient stock basis. X, the shareholders have dividend income of (1) C corporation: Because the corporation has ending E & P of sl $200,000. (2) S corporation: Shareholders have a return of capital of $200,000