On January 2, Chaz transfers cash of $191,000 to a newly formed corporation for 100% of the stock. In its initial year, the corporation has net income of $47,750. The income is credited to its earnings and profits account. The corporation distributes $14,325 to Char. If an amount is zero, enter "0". a. How do Chaz and the corporation treat the $14,325 distribution? Chaz has a and the corporation has a deduction of t b. Assume instead that Chaz transfers to the corporation cash of $95,500 for stock and cash of $95,500 for a note of the same amount. The note is payable in equal annual installments of $9,550 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(ie, the annual $9,550 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 of which Chaz has interest of s and a note repayment of is taxable to Chaz. The corporation has a deduction of