Finding out the tax consequences

Reference no: EM13154137

Amber holds a 20% interest in a business to which she contributed $100,000 as part of the initial ownership group. During the life of the business, the following have occurred.

$200,000 cumulative losses, first three tax years.

$150,000 operating profit in the fourth tax year.

$75,000 distribution to owners at the end of the third tax year.

$60,000 payment to redeem 25% of Amber's ownership interest at the end of the fourth year. No other ownership redemptions have occurred.

Determine the tax consequences to Amber if the entity is organized as:

a. A partnership

b. An s corporation

c. a C corporation

Reference no: EM13154137

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