On May 1, 1989, Brendan McLeod and Duncan Ryan formed Angler Corporation to sell fishing tackle. Angler elected Subchapter 5 status for 1989 and has maintained that status. Pertinent information regarding Angler is summarized as follows: The business address is 3027 Woodland Ridge Blvd, Baton Rouge, Louisiana '70816. The employer identification number is 753392 543; the principal business activity code is 451110. The filing center is Memphis, Tennessee. Brendan and Duncan each own onehalf of the outstanding common stock; no other class of stock is authorized. Brendan is president of the company, and Duncan is secretarytreasurer. Both are fulltime employees of the corporation, and each receives a salary of $140,000. Brendan's Social Security number is 145202 593. Duncan's Social Security number is 28?434945. The corporation uses the accrual method of accounting and reports on a calendar basis. Inventories are determined by using the lower of cost or market method. For book and tax purposes, the straightline method of depreciation is used. During 2016, the corporation distributed a cash disbursement of $80,000 ($40,000 for each shareholder} as a disbursement from the accumulated adjustment account. And an additional disbursement of $15?,440 ($8,720 for each shareholder) to allow the shareholders to pay taxes on their income