On January $2,$ Chaz transfers cash of $$188,200$ to a newly formed corporation for $100\%$ of the stock. In its initial year, the corporation has net income of $$47,050.$ The income is credited to its earnings and profits account. The corporation distributes $$14,115$ to Chaz.

If an amount is zero, enter $"0".$

a$.$ How do Chaz and the corporation treat the $$14,115$ distribution?

Chaz has a

of $fill in the blank $2$ and the corporation has a deduction of $fill in the blank $3.$

b$.$ Assume instead that Chaz transfers to the corporation cash of $$94,100$ for stock and cash of $$94,100$ for a note of the same amount. The note is payable in equal annual installments of $$9,410$ and bears interest at the rate of $6\%.$ No distributions are made during the year to Chaz. However, at the end of the year, the corporation pays an amount to meet the loan obligation$($i$.$e$.,$ the annual $$9,410$ principal payment plus the interest due$).$

Determine the total amount of the payment and its tax treatment to Chaz and the corporation.

The corporate payment to Chaz totals $fill in the blank $4.$ Chaz has interest of $fill in the blank $5$ and a note repayment of $fill in the blank $6$ of which $fill in the blank $7$ is taxable to Chaz. The corporation has a deduction of $fill in the blank $8.$