Amber has a 20% ownership interest in an entity for which she initially contributed $100,000. She is one of the original owners of the business. None of the owners are related. During the life of the business, the following have occurred:
*Cumulative losses of $200,000 during the first three years.
*Profits of $150,000 in the next year.
*Distributions to owners of $75,000 at the end of year 3.
*Distribution to Amber of $60,000 that redeems 25% of her ownership interest at the end of year 4. No other owners redeem any of their ownership interest.
Determine the tax consequences to Amber if the entity is:
a. A partnership
b. An S corporation
c. A C corporation