Investor A, a single individual, has $200,000 of taxable income in 2014, 2015 and 2016 before his investment in Entity X. Entity X has an end of year loss in 2014 and 2015 of ($50,000) per year and has profits in 2016 of $300,000.

What is the tax savings or tax costs on Entity X losses and profits if X is a

a) Pass-through entity?

b) C Corporation?

Assume 35% tax rate for pass through entity.