On January 2, Chaz transfers cash of $160,200 to a newly formed corporation for 100% of the stock. In its initial year, the corporation has net income of $40,050. The income is credited to its earnings and profits account. The corporation distributes $12,015 to Chaz. If an amount is zero, enter " 0 ". a. How do Chaz and the corporation treat the $12,015 distribution? Chaz has a of 5 and the corporation has a deduction of \{ b. Assume instead that Chaz transfers to the corporation cash of 580,100 for stock and cash of $80,100 for a note of the same amount. The note is payable in equal annual installments of $8,010 and bears interest at the rate of 6%. No distributions are made during the year to Chaz. However, at the end of the vear, the corporation pays an amount to ment the loan obllgation(i.e., the annual 58,010 principal payment plus the interest due). Determine the total amount of the payment and its taxureatment to Chaz and the corporation. The corporate payment to Chaz totals \& Chaz has interest of \& and a note repayment of of which 1 is taxable to chaz, The corporation has a deduction of s