On January 2, Chaz transfers cash of $104,200 to a newly formed corporation for 100% of the stock. In its initial year, the corporation has net income of $26,050. The income is credited to the earnings and profits account of the corporation. The corporation distributes $7,815 to Chaz. If an amount is zero, enter " 0 ". a. How do Chaz and the corporation treat the $7,815 distribution? Chaz has a of $ and the corporation has a deduction of s b. Assume, instead, that Chaz transfers to the corporation cash of $52,100 for stock and cash of $52,100 for a note of the same amount. The note is payable in equal annual instaliments of $5,210 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 $5,210 princibal 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 5 X. Chaz has interest of $ X and a note repayment of X of which s X is taxable to Chaz. The corporation has a deduction of 5 x