Ridge Development is formed on June 1 by John Parks and Sue Jones to operate as a calendar year accrual basis company that develops and markets land to customers. John will contribute land with fair market value of $700,000, an adjusted tax basis of $350,000, and a $100,000 nonrecourse bank loan incurred to purchase the land, for an interest in the company. The land was purchased by john three years ago and has been held as an investment. Sue will contribute shares of stock in Yukon Corporation with a fair market value of $200,000 and an adjusted tax basis of $210,000, for an interest in the company. Sue purchased both blocks of stock 22 months ago as an investment. If ridge development group is organized as a corporation, John will receive 60% of the shares of stock for his interest and Sue will receive 40% of the shares of stock (ignoring the effects of the deffered tax liability). Ridge Development group then proceeded to sell 30% of the land for $360,000 on October 20th, all of the shares of stock in Frontier Company for $225,000 on December 10th, and incurred selling and administrative expenses of $60,000 (all related to land sale), which is paid in cash before the end of the year. Ridge also distributed a total of $60,000 to john and sue based on their proportional ownership on December 20th. Both john and sue are single, between the ages of 40-50, with no dependents, and each has wages of $90,000 from outside sources. Assume the current year corporate and individual tax rates for the calculation of taxes. If Ridge is a organized as a corporation calculate the following..... 1. Entity Federal Tax Liability 2. Entity Taxable Income 3. Entity Current E&P earnings and profit 4. John's initial tax stock basis 5. Sue's initial tax stock basis 6. How are the distributions taxed to john and sue? Show all calculations.