Tony Dalton, Inc., an electing S corporation, has two shareholders, Bill $($owns $350$ shares$)$ and Gale $($owns $650$ shares$).$ At the beginning of $2017,$ assume Bill has stock a basis of $$4,200$ and made a loan to the S$-$corp of $$1,900.$ Tony Dalton's taxable income is $$6,500$ for $2017.$ Tony Dalton then has as a loss in $2018$ of $$31,000,$ and income in $2019$ of $$13,000.$ Bill also receives a distribution of $$1,500$ in $2019.$ At the beginning of $2020,$ Tony Dalton repays the note to Bill.

ANSWER THE FOLLOWING PARTS:

A$.)$ How much income or loss can Bill recognize in the following years:

$-2017$:

$-2018$:

$-2019$:

B$.)$ How much gain will Bill have to recognize when the loan gets repaid?

C$.)$ Is the $$1,500$ distribution taxable? Why or why not?