Problem 13-48 (Lo. 5) An entity reports the following income for the current year. $92,000 19,000 60,000 Operations Tax-exempt interest income Long-term capital gain The entity holds earnings and profits (AAA for an S corporation) of $900,000 at the beginning of the year. A distribution of $200,000 is made to the owners. a. Determine the income for each entity type below: (1) If the entity is a C corporation then the taxable income is (2) If the entity is an S-corporation then the ordinary income of the corporation is b. Determine the effect of the distribution on the shareholders for the entity (1) C corporation: Shareholders have $200,000 (2) S corporation: Shareholders have $200,000