Merrie Melodies, Inc., an electing S corporation, has two shareholders, Daffy Duck (owns 300 shares) and Porky Pig (owns 700 shares). At the beginning of 2020, assume Daffy Duck has stock basis of $4,000 and made a loan to the S-corp of $1,800. Merrie Melodies's taxable income is $6,000 for 2020 . Merrie Melodies then has as a loss in 2021 of $30,000, and income in 2022 of $12,500. Daffy also receives a distribution of $1,000 in 2022 . At the beginning of 2023 , Merrie Melodies repays the note to Daffy Duck. a. How much income or loss can Daffy Duck recognize in the following years: 2020, 2021, 2022? 2020 2021 2022 b. How much gain will Daffy Duck have to recognize when the loan gets repaid? c. Is the $1,000 distribution taxable? Why or why not (explain your answer in one sentence)