Required:

a$.$ Assume James and Paul formed GTE as an S corporation.

$$ Complete GTE$$s Form $1120-$S page $1$; Form $1120-$S$,$ Schedule K; and Paul$$s Form $1120-$S Schedule K$-1($note that you should use $2022$ tax forms$).(25$ points$)$

$$ Compute the tax basis of Paul$$s stock in GTE at the end of $2023.(10$ points$)$

$$ What amount of Paul$$s income from GTE is subject to FICA or self$-$employment taxes? $(5$ points$)$

$$ What amount of income, including its character, will Paul recognize on the $$30,000$ distribution he receives on December $1?(5$ points$)$