On January 2, Chaz transfers cash of $76,200 to a newly formed corporation for 100% of the stock. In its initial year, the corporation has net income of $19,050. The income is credited to its earnings and profits account. The corporation distributes $5,715 to Chaz. If an amount is zero, enter " 0 ". a. How do Chaz and the corporation treat the $5,715 distribution? Chaz has a of $ and the corporation has a deduction of \$ b. Assume instead that Chaz transfers to the corporation cash of $38,100 for stock and cash of $38,100 for a note of the same amount. The note is payable in equal annual installments of $3,810 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 $3,810 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 \$ Chaz has interest of $ and a note repayment of $ of which $ is taxable to Chaz. The corporation has a deduction of \$