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