16. LO.4 The Coffee Company engages in the following transactions during the taxable year.

• Sells stock held for three years as an investment for $30,000 (adjusted basis of

$20,000).

• Sells land used in the business for $65,000. The land has been used as a parking lot and originally cost $40,000.

• Receives tax-exempt interest on municipal bonds of $5,000.

• Receives dividends on IBM stock of $80,000.

Describe the tax consequences of these transactions for the entity and its owners if the entity is organized as:

a. A partnership.

b. A C corporation.

c. An S corporation.

d. An LLC.